American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Macroeconomic Implications of Uniform Pricing
American Economic Journal: Macroeconomics
(pp. 64–108)
Abstract
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.Citation
Daruich, Diego, and Julian Kozlowski. 2023. "Macroeconomic Implications of Uniform Pricing." American Economic Journal: Macroeconomics 15 (3): 64–108. DOI: 10.1257/mac.20210172Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L81 Retail and Wholesale Trade; e-Commerce
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R32 Other Spatial Production and Pricing Analysis