Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171957
Authors: 
Fielding, David
Hajzler, Christopher
MacGee, James
Year of Publication: 
2017
Series/Report no.: 
Bank of Canada Staff Working Paper 2017-3
Abstract: 
Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship. However, most empirical studies examine only RIV, finding that RIV is high when inflation is high. We examine city-level retail price data from Japan, Canada and Nigeria, and find that the impact of inflation on RIV differs from its effect on RPV. In particular, positive inflation shocks reduce RPV but raise RIV.
Subjects: 
Inflation and prices
JEL: 
E31
E50
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.