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Evidence Of Spatial Autocorreilation In International Prices

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  • Bettina Aten

Abstract

Data from the International Comparison Programme (ICP) generate a number of analyses examining price and quantity relationships across countries. Although geographic location is sometimes evoked to explain differences across observations, it is seldom used to measure the extent of this interrelationship. Using ICP Phase V benchmark studies (Summers and Heston, 1991) at the level of household consumption for approximately 64 countries and 23 aggregate headings in 1985, this paper introduces such a measure, testing for spatial autocorrelation among price relatives with respect to three different measures of relative location: the pairwise existence of a common boundary, the distance between capital cities and the amount of trade between two countries.

Suggested Citation

  • Bettina Aten, 1996. "Evidence Of Spatial Autocorreilation In International Prices," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 149-163, June.
    • Handle: RePEc:bla:revinw:v:42:y:1996:i:2:p:149-163
    DOI: 10.1111/j.1475-4991.1996.tb00163.x
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    Cited by:

    1. Sebastian Weinand, 2022. "Measuring spatial price differentials at the basic heading level: a comparison of stochastic index number methods," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 106(1), pages 117-143, March.
    2. Bettina H. Aten, 1997. "Does Space Matter? International Comparisons of the Prices of Tradables and Nontradables," International Regional Science Review, , vol. 20(1-2), pages 35-52, April.
    3. Amita Majumder & Ranjan Ray, 2020. "National and subnational purchasing power parity: a review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(2), pages 103-124, June.
    4. Weinand, Sebastian, 2020. "Measuring spatial price differentials: A comparison of stochastic index number methods," Discussion Papers 12/2020, Deutsche Bundesbank.
    5. Vincent, Rose Camille & Osei Kwadwo, Victor, 2022. "Spatial interdependence and spillovers of fiscal grants in Benin: Static and dynamic diffusions," World Development, Elsevier, vol. 158(C).

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