Journal Article
Intra-national Purchasing Power Parity and Balassa-Samuelson Effects in Italy
Considering a sample of 71 Italian metropolitan areas, this paper goes beyond the assumption that there exists a unique core inflationary process in a macroeconomy. We show that local long-run inflation rates can display remarkable variability. On the one hand they are negatively correlated with productivity growth, on the other the less competitive is the local retail sector and the higher is long-run inflation.
Key Words
- Balassa-Samuelson model
- Kaldor-Verdoorn model
- Kaufkraftparität
- long-run inflation
- purchasing power parity