Considering a sample of 71 Italian metropolitan areas, this paper goes beyond the assumption that a unique core inflationary process exists in a macroeconomy. It shows 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 the local retail sector, the higher is long-run inflation.

Intra-national Purchasing Power Parity and Balassa-Samuelson Effects in Italy

VAONA, Andrea
2011-01-01

Abstract

Considering a sample of 71 Italian metropolitan areas, this paper goes beyond the assumption that a unique core inflationary process exists in a macroeconomy. It shows 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 the local retail sector, the higher is long-run inflation.
2011
Purchasing power parity; longrun inflation; Balassa Samuelson model; Kaldor Verdoorn model
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/360440
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