Understanding international price differences using barcode data
By: Christian Broda, David E. Weinstein.
Contributors: Weinstein, David E.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 14017; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 14017.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "The empirical literature in international finance has produced three key results about international price deviations: borders give rise to flagrant violations of the law of one price, distance matters enormously for understanding these deviations, and most papers find that convergence rates back to purchasing power parity are inconsistent with the evidence of micro studies on nominal price stickiness.  The data underlying these results are mostly comprised of price indexes and price surveys of goods that may not be identical internationally.  In this paper, we revisit these three stylized facts using massive amounts of US and Canadian data that share a common barcode classification.  We find that none of these three main stylized facts survive.  We use our barcode level data to replicate prior work and explain what assumptions caused researchers to find different results from those we find in this paper.  Overall, our work is supportive of simple pricing models where the degree of market segmentation across the border is similar to that within borders"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/10/2008.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.