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Price dispersion and inflation rates: evidence from scanner data

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  • Castellari, Elena
  • Moro, Daniele
  • Platoni, Silvia
  • Sckokai, Paolo

Abstract

In this paper we investigate the relationship between price dispersion and inflation; we use weekly retail scanner data from 2009 to 2011 to measure price dispersion and inflation for several dairy products. We implement a linear model to investigate the linkage between price dispersion and consumer price indexes. As in the previous literature, we obtain mixed results with respect to the relationship between price dispersion and inflation, and further investigation and theoretical refinement are needed to identify a common pattern.

Suggested Citation

  • Castellari, Elena & Moro, Daniele & Platoni, Silvia & Sckokai, Paolo, 2015. "Price dispersion and inflation rates: evidence from scanner data," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207268, Italian Association of Agricultural and Applied Economics (AIEAA).
    • Handle: RePEc:ags:aiea15:207268
    DOI: 10.22004/ag.econ.207268
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    References listed on IDEAS

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    1. Ivancic, Lorraine & Erwin Diewert, W. & Fox, Kevin J., 2011. "Scanner data, time aggregation and the construction of price indexes," Journal of Econometrics, Elsevier, vol. 161(1), pages 24-35, March.
    2. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-659, September.
    3. Anania, Giovanni & Nisticò, Rosanna, 2014. "Price dispersion and seller heterogeneity in retail food markets," Food Policy, Elsevier, vol. 44(C), pages 190-201.
    4. Saul Lach, 2002. "Existence And Persistence Of Price Dispersion: An Empirical Analysis," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 433-444, August.
    5. Caglayan, Mustafa & Filiztekin, Alpay & Rauh, Michael T., 2008. "Inflation, price dispersion, and market structure," European Economic Review, Elsevier, vol. 52(7), pages 1187-1208, October.
    6. Reinsdorf, Marshall, 1994. "New Evidence on the Relation between Inflation and Price Dispersion," American Economic Review, American Economic Association, vol. 84(3), pages 720-731, June.
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    Keywords

    Agribusiness; Agricultural and Food Policy;

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