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The Cyclicality of Sales, Regular, and Effective Prices: Business Cycle and Policy Implications: Comment

By Etienne Gagnon, David López-Salido, and Jason Sockin

American Economic Review, October 2017

Coibion, Gorodnichenko, and Hong (2015) argue that the CPI underestimates the deceleration in consumer prices during economic downturns because the index fails to account for the reallocation of consumer spending from high-price to low-price stores. We sh...

The Cyclicality of Sales, Regular and Effective Prices: Business Cycle and Policy Implications: Reply

By Olivier Coibion, Yuriy Gorodnichenko, and Gee Hee Hong

American Economic Review, January 2019

We address how using different censoring thresholds and imputation procedures affects the baseline results of Coibion, Gorodnichenko, and Hong (2015). Higher censoring thresholds introduce measurement error and outliers that generate wide variability in r...

The Economics of the Public Option: Evidence from Local Pharmaceutical Markets

By Juan Pablo Atal, José Ignacio Cuesta, Felipe González, and Cristóbal Otero

American Economic Review, March 2024

We study the effects of competition by state-owned firms, leveraging the decentralized entry of public pharmacies to local markets in Chile. Public pharmacies sell the same drugs at a third of private pharmacy prices, because of stronger upstream bargaini...