Quaderni di Dipartimento, EPMQ, Università degli Studi di Pavia 204
Considering a sample of about 70 Italian regions, this paper goes beyond the assumption that there exists a unique core inflationary process in a macroeconomy. We show that local long-run inflation rates can display remarkable variability. On the one hand they are negatively correlated with productivity growth, on the other the less competitive is the local retail sector and the higher is long-run inflation.
purchasing power parity long-run inflation Balassa-Samuelson model Kaldor-Verdoorn model