TY - JOUR
T1 - Money and price dispersion in the united states
AU - Hercowitz, Zvi
N1 - Funding Information:
*This paper is based on part of my doctoral dissertation at the University of Rochester. The National Science Foundation has supported this research. I am grateful to Robert Barro for his guidance during my dissertation research and have also benelited from useful comments by Alex Cukierman and Richard Parks. The research reported here is part of NBER’s research program in economic fluctuations. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research.
PY - 1982/7
Y1 - 1982/7
N2 - This paper reports an empirical test of a price dispersion equation using data on the U.S. after World War II. The equation - derived elsewhere from a version of the partial informationlocalized market models - relates price dispersion to the magnitude of the aggregate shocks. In order to test the model a price dispersion series is computed using annual wholesale price indexes and weights for the period 1948/76. The data on money shocks are the unanticipated money growth series estimated by Barro. The tests also include a measure of aggregate-real disturbances. From the theoretical point of view the results are negative. They do not detect an effect of money shocks on price dispersion, but support the predicted effect of real shocks.
AB - This paper reports an empirical test of a price dispersion equation using data on the U.S. after World War II. The equation - derived elsewhere from a version of the partial informationlocalized market models - relates price dispersion to the magnitude of the aggregate shocks. In order to test the model a price dispersion series is computed using annual wholesale price indexes and weights for the period 1948/76. The data on money shocks are the unanticipated money growth series estimated by Barro. The tests also include a measure of aggregate-real disturbances. From the theoretical point of view the results are negative. They do not detect an effect of money shocks on price dispersion, but support the predicted effect of real shocks.
UR - http://www.scopus.com/inward/record.url?scp=0001992874&partnerID=8YFLogxK
U2 - 10.1016/S0304-3932(82)80003-2
DO - 10.1016/S0304-3932(82)80003-2
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AN - SCOPUS:0001992874
SN - 0304-3932
VL - 10
SP - 25
EP - 37
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
IS - 1
ER -