Arbeitspapier
Impact of institutions on cross-border price dispersion
This paper analyzes the role of institutions in price dispersion among cities in the European region in the 1996-2009 period. An overview of the literature on the border effect reveals that the role of institutions is completely neglected. Using the Worldwide Governance Indicators as explanatory variables I find that the better the institutions, the lower the predicted dispersion. The result is robust to different specifications of the regression model and it is consistent with a hypothesis that arbitrage, as an entrepreneurial activity and the main power behind the law of one price, is influenced by institutional quality.
- Language
-
Englisch
- Bibliographic citation
-
Series: IES Working Paper ; No. 30/2011
- Classification
-
Wirtschaft
Organizational Behavior; Transaction Costs; Property Rights
Price Level; Inflation; Deflation
Open Economy Macroeconomics
Entrepreneurship
- Subject
-
border effect
price dispersion
price convergence
law of one price
institutional quality
Preisdifferenzierung
Preiskonvergenz
Institutionelle Infrastruktur
Systemvergleich
Europa
- Event
-
Geistige Schöpfung
- (who)
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Schwarz, Jiří
- Event
-
Veröffentlichung
- (who)
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Charles University in Prague, Institute of Economic Studies (IES)
- (where)
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Prague
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schwarz, Jiří
- Charles University in Prague, Institute of Economic Studies (IES)
Time of origin
- 2011
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