Macroeconomic Implications of Uniform Pricing

A-Tier
Journal: American Economic Journal: Macroeconomics
Year: 2023
Volume: 15
Issue: 3
Pages: 64-108

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:aea:aejmac:v:15:y:2023:i:3:p:64-108
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25