American Economic Journal: Macroeconomics
no. 3, July 2023
We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within the stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment while prices in multiregion chains do not. Using a quantitative regional model with multiregion firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities.
Daruich, Diego, and Julian Kozlowski.
"Macroeconomic Implications of Uniform Pricing."
American Economic Journal: Macroeconomics,
Firm Behavior: Empirical Analysis
Production, Pricing, and Market Structure; Size Distribution of Firms
Retail and Wholesale Trade; e-Commerce
Industrialization; Manufacturing and Service Industries; Choice of Technology
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Other Spatial Production and Pricing Analysis