Unbiased Estimation of the Half-Life to Price Index Convergence among U.S. Cities
Hiranya Nath and
Jayanta Sarkar
Journal of Money, Credit and Banking, 2009, vol. 41, issue 5, 1041-1046
Abstract:
Estimates of the half-life to convergence of prices across a panel of cities are subject to bias from three potential sources: inappropriate cross-sectional aggregation of heterogeneous coefficients, presence of lagged dependent variables in a model with individual fixed effects, and time aggregation of commodity prices. This paper finds no evidence of heterogeneity bias in annual CPI data for 17 U.S. cities from 1918 to 2006, but correcting for the "Nickell bias" and time aggregation bias produces a half-life of 7.5 years, shorter than estimates from previous studies. Copyright (c) 2009 The Ohio State University.
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (15)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Unbiased Estimation of the Half‐Life to Price Index Convergence among U.S. Cities (2009) 
Working Paper: Unbiased Estimation of the Half-Life to Price Index Convergence among US Cities (2007) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:41:y:2009:i:5:p:1041-1046
Access Statistics for this article
Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West
More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().