Price convergence patterns across U.S. States

This study examines the convergence patterns of prices across 50 U.S. states over the period 1960-2007, by applying the convergence algorithm developed by Peter C. B. Phillips and Donggyu Sul (2007). The empirical findings suggest the rejection of full convergence across the 50 U.S. states’ prices,...

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Detalles Bibliográficos
Autores: Christou, C. (Christina)|||/items/58ddcc28-4f41-4d73-bbab-fe2a1bf19072, Cuñado, J. (Juncal)|||/items/2fe461d2-334e-4422-be6b-a8bd73f61e54, Gupta, R. (Rangan)|||/items/60144084-0346-45bf-8fbc-00ebc8d338a6
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/62887
Acceso en línea:https://hdl.handle.net/10171/62887
Access Level:acceso abierto
Palabra clave:Price convergence
Club convergence
U.S. states
Descripción
Sumario:This study examines the convergence patterns of prices across 50 U.S. states over the period 1960-2007, by applying the convergence algorithm developed by Peter C. B. Phillips and Donggyu Sul (2007). The empirical findings suggest the rejection of full convergence across the 50 U.S. states’ prices, and the presence of 11 subgroups, or convergence clubs. The main implications of this paper point to the low degree of market integration across the U.S. states, the limitations of using a unique national price deflator to calculate real U.S. state variables, and the different effects that national monetary policy decisions will have on U.S. state prices.