Open AccessTHE IMPACT OF TECHNOLOGY ON REGIONAL PRICE DISPERSION IN THE US
Author(s) -
İsmail H. Genç
Publication year - 2021
Publication title -
technological and economic development of economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.634
H-Index - 47
eISSN - 2029-4921
pISSN - 2029-4913
DOI - 10.3846/tede.2021.15238
Subject(s) - pace , inflation (cosmology) , economics , price dispersion , convergence (economics) , dispersion (optics) , standard deviation , econometrics , competition (biology) , monetary economics , macroeconomics , mathematics , statistics , ecology , physics , geodesy , biology , theoretical physics , optics , geography
We analyze the behavior of inflation in the era of fast pace information thanks to technological advances, especially internet. Owing to readily available information, prices/inflation should quickly converge under perfect competition. To this end, we explore the possibility of price convergence in regional inflation in the USA including the permanency of such a phenomenon if observed, a concern for monetary policy makers. Empirically, we analyze standard deviation of regional inflation with special attention to technology. We show that standard deviation of inflation is not constant over time, but not necessarily ever-declining. Technology seems to help reduce price dispersion across regions.