Journal Article

Intra-national Purchasing Power Parity and Balassa-Samuelson Effects in Italy

Author

  • Andrea Vaona
Publication Date

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.

Info

JEL Classification
R1, E31, F49
DOI
10.1080/17421772.2011.586720

Key Words

  • Balassa-Samuelson model
  • Kaldor-Verdoorn model
  • Kaufkraftparität
  • long-run inflation
  • purchasing power parity