Mohsin, Hasan M and Gilbert, Scott (2010): Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS. Forthcoming in: Pakistan Development Review (2011)
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Abstract
The study estimates relative city price convergence using CPI data from July 2001 to June 2008 on 35 Pakistani cities. Two cities Lahore and Karachi are chosen to be the numeraire cities. The half life of relative city price shock has also been estimated. The study finds average half life of price shock to be less than 5 months but it varies from 1.3 to 68 months in the case of individual cities. The estimates of Spatial GLS are found to be lower than OLS which may imply that Spatial Correlations are important factor for the estimation of half life. Furthermore, the average half life of a price shock in Lahore is less than that of Karachi.
Item Type: | MPRA Paper |
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Original Title: | Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS |
Language: | English |
Keywords: | Prices; convergence; Spatial GLS |
Subjects: | F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation |
Item ID: | 27901 |
Depositing User: | Hasan Muhammad Mohsin |
Date Deposited: | 11 Sep 2011 12:36 |
Last Modified: | 01 Oct 2019 04:18 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/27901 |