Mind the gap: city-level inflation synchronization

Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Mind the gap: city-level inflation synchronization
In the Journal:
International review of economics. 2023, vol. 70, p. 121-139
Summary / Abstract:

ENThe post-pandemic rise in consumer prices across the world has renewed interest in infation dynamics after decades of global disinfation. This paper provides a spatial investigation of infation synchronicity at the city level in Lithuania using disaggregated monthly data during the period 2000–2021. The empirical analysis provides strong evidence that (i) the co-movement of city-level infation rates—estimated using the instantaneous quasi-correlation approach—is signifcantly weaker than the extent of synchronization suggested by the simple correlation analysis; (ii) there is substantial heterogeneity in the instantaneous quasi-correlation of infation subcomponents between city pairs; and (iii) there are signifcant changes in the degree of city-level synchronization over time, refecting important economic developments in history such as the global fnancial crisis, the adoption of euro, and the COVID-19 pandemic. Keywords: infation synchronization, subnational, transition economies, Lithuania. [From the publication]

DOI:
10.1007/s12232-023-00412-z
ISSN:
1865-1704; 1863-4613
Related Publications:
Peripheral regions in Lithuania: the results of uneven development / Gintarė Pociūtė-Sereikienė. Regional studies, regional science. 2019, 6, 1, p. 70-77.
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https://www.lituanistika.lt/content/108131
Updated:
2024-05-25 18:32:42
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