Price Index Convergence Among Indian Cities: A Cointegration Approach
نویسندگان
چکیده
We examine the price dynamics in Indian cities using cointegration analysis. We identify and then calculate a common trend for prices in these 25 cities. We obtain the impulse response functions to calculate the rates of convergence to the prices, and find that the half-life of any shock is very small for Indian cities. Although a close to three-month half-life seems too fast, there are some indications in the literature that half-life can be much smaller. We also analyzed how shock can be transmitted from one city to another and found no systematic behavior of price convergence. JEL Classification Code: F15, E31, C23.
منابع مشابه
Price Convergence Among Indian Cities: A Cointegration Approach
Price dynamics in Indian cities were examined using cointegration analysis. We identified and calculated a common trend for prices in 25 major cities in India. Impulse response functions were obtained to calculate the rates of convergence to the prices and we found that the half-life of any shock is very small for Indian cities. Although a close to three-month half-life seems too fast, there is...
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