Price dispersion across countries and the heterogeneous impacts of income differences

Yue Liu

Economics Letters, 2016, vol. 140, issue C, 64-67

Abstract: Using price information about thousands of identical products sold across over 70 countries, I show that the deviations from Law of One Price (LOP) are substantial, and relatively smaller for higher-priced products. In addition, I find that income difference across countries is one reason for the price dispersions, and its impact is smaller for higher-priced products.

Keywords: Law of one price; Income difference; Online price (search for similar items in EconPapers)
JEL-codes: E3 F1 F3 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:140:y:2016:i:c:p:64-67

DOI: 10.1016/j.econlet.2016.01.012

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