Inflation, price dispersion and market integration through the lens of a monetary search model
Becker, Sascha ;  Nautz, Dieter ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleInflation, price dispersion and market integration through the lens of a monetary search model
AuthorBecker, Sascha
AuthorNautz, Dieter
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages23 S.
Series ; 2010,2 : Economics
KeywordsInflation; Relative price variability; Monetary search models; European market integration
Classification (DDC)339 Macroeconomics and related topics
AbstractRecent monetary search models emphasize that the real effects of inflation via its
impact on price dispersion depend on the level of search costs and, thus, on the
level of market integration. For less integrated markets, the inflation-price dispersion
nexus is predicted to be asymmetrically V-shaped which implies an optimal
inflation rate above zero. For highly integrated markets, however, theory suggests
that the impact of inflation on price dispersion disappears. Employing price data
of the European Union member states, this paper is the first that empirically tests
these implications of monetary search theory.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Institut für Statistik und Ökonometrie
Year of publication2010
Type of documentBook
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Created at2010-03-30 : 08:28:37
Last changed2016-01-05 : 02:38:18
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000005072