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Volatility of relative prices and transportation costs: evidence for Brazilian cities

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  • Felipe de Sousa Bastos
  • Roberto Tatiwa Ferreira

Abstract

This work estimates the effect of transport costs on relative price volatility in Brazilian cities. We use time-varying volatility measures and propose a new proxy for transportation costs. The results of the dynamic panel data models show (little) evidence of a positive impact of transport costs on relative price volatility, only in specifications without the relative wage volatility.

Suggested Citation

  • Felipe de Sousa Bastos & Roberto Tatiwa Ferreira, 2021. "Volatility of relative prices and transportation costs: evidence for Brazilian cities," Applied Economics Letters, Taylor & Francis Journals, vol. 28(10), pages 872-875, June.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:10:p:872-875
    DOI: 10.1080/13504851.2020.1784383
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