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Regional Inflation Persistence: Evidence from Italy

Author

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  • Andrea Vaona
  • Guido Ascari
Abstract
Vaona A. and Ascari G. Regional inflation persistence: evidence from Italy, Regional Studies . Regional patterns of inflation persistence have received attention only at the level of European Monetary Union member states. However, economic disparities within European Monetary Union member states are an equally important policy issue. This paper considers a country with a large regional divide -- Italy -- at a fine level of territorial disaggregation (NUTS-3). It is shown that economically backward regions display greater inflation persistence. Moreover, higher persistence is linked to a lower degree of competitiveness in the retail sector. Finally, the inflation persistence at the national level does not present any geographical aggregation bias, because it equals the mean of inflation persistence of provincial data. Vaona A. et Ascari G. La continuit� de l'inflation r�gionale: des preuves provenant de l'Italie, Regional Studies . C'est seulement par rapport aux pays-membres de la zone euro que la distribution r�gionale de la continuit� de l'inflation a attir� l'attention. Cependant, les �carts �conomiques au sein des pays-membres de la zone euro sont �galement une question de politique importante. Cet article cherche à consid�rer un pays où s'impose un clivage r�gional non-n�gligeable -- à savoir, l'Italie -- à un niveau fin de d�sagr�gation territoriale (NUTS-3). On montre que les r�gions �conomiquement en perte de vitesse font preuve d'une plus grande continuit� de l'inflation. Qui plus est, une plus grande continuit� se rapporte à un niveau de comp�titivit� moins �lev� dans le commerce de d�tail. Finalement, la continuit� de l'inflation au niveau national ne fait aucune preuve de parti pris quant à l'agr�gation g�ographique, parce que elle est la moyenne de la continuit� de l'inflation des donn�es r�gionales. Continuit� de l'inflation Commerce de d�tail R�gions Vaona A. und Ascari G. Regionale Inflationspersistenz: Belege aus Italien, Regional Studies . Die regionalen Muster der Inflationspersistenz wurden bisher nur auf der Ebene der Mitgliedsstaaten der Europäischen Währungsunion untersucht. Die wirtschaftlichen Disparitäten innerhalb der Mitgliedsstaaten der Europäischen Währungsunion sind jedoch ein ebenso wichtiges politisches Problem. In diesem Beitrag wird ein Land mit starken regionalen Unterschieden (Italien) auf der engmaschigen Ebene der territorialen Disaggregation untersucht. Es wird nachgewiesen, dass wirtschaftlich rückständige Regionen eine höhere Inflationspersistenz aufweisen. Darüber hinaus geht eine höhere Persistenz mit einem niedrigeren Ausmaß von Konkurrenz im Einzelhandelssektor einher. Ebenso weist die Inflationspersistenz auf nationaler Ebene kein geografisches Aggregationsungleichgewicht auf, da sie der mittleren Inflationspersistenz von Daten auf Provinzebene entspricht. Inflationspersistenz Einzelhandelssektor Regionen Vaona A. y Ascari G. Persistencia de la inflación regional: el ejemplo de Italia, Regional Studies . Los modelos regionales de la persistencia de la inflación hasta ahora se han analizado solamente a nivel de los estados miembros de la Unión Monetaria Europea. Sin embargo, las desigualdades económicas entre los estados de la Unión Monetaria Europea son un tema pol�tico igualmente importante. En este art�culo consideramos un pa�s con una enorme división regional (Italia) a un nivel detallado de desagregación territorial (NUTS-3). Mostramos que las regiones económicamente atrasadas muestran una persistencia de inflación mayor. Además, una mayor persistencia está vinculada a un menor grado de competitividad en el sector minorista. Finalmente, la persistencia de la inflación a nivel nacional no presenta ninguna parcialidad de agregación geográfica porque iguala el promedio de persistencia de la inflación de los datos provinciales. Persistencia de la inflación Sector minorista Regiones

Suggested Citation

  • Andrea Vaona & Guido Ascari, 2012. "Regional Inflation Persistence: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 46(4), pages 509-523, June.
    • Handle: RePEc:taf:regstd:v:46:y:2012:i:4:p:509-523
    DOI: 10.1080/00343404.2010.505913
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    7. Nagayasu, Jun, 2015. "Regional Inflation and Consumption Behaviors," MPRA Paper 68566, University Library of Munich, Germany.
    8. Coleman, Simeon, 2012. "Where Does the Axe Fall? Inflation Dynamics and Poverty Rates: Regional and Sectoral Evidence for Ghana," World Development, Elsevier, vol. 40(12), pages 2454-2467.
    9. Polina S. Kuklinova & Vladimir V. Ilyashenko, 2022. "The impact of the inflation-targeting regime on the economic development of an industrial region," Journal of New Economy, Ural State University of Economics, vol. 23(2), pages 125-141, July.
    10. Mattia Cattaneo & Paolo Malighetti & Michele Meoli & Stefano Paleari, 2017. "University spatial competition for students: the Italian case," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 750-764, May.
    11. de Haas, R. & Brown, M. & Sokolov, V., 2015. "Regional Inflation, Financial Integration and Dollarization (This is a revision of CentER DP 2013-073)," Discussion Paper 2015-012, Tilburg University, Center for Economic Research.
    12. Hasan Engin Duran & Burak Dindaroğlu, 2021. "Regional inflation persistence in Turkey," Growth and Change, Wiley Blackwell, vol. 52(1), pages 460-491, March.
    13. Nikolsko-Rzhevskyy, Alex & Ogrokhina, Olena, 2018. "Behavior of retail prices in common currency areas: The case of the Eurozone," Economic Modelling, Elsevier, vol. 69(C), pages 49-57.
    14. Ikeno, Hidehiro, 2014. "Long-run analysis on convergence of Japanese local price levels: A pairwise approach," Economic Modelling, Elsevier, vol. 42(C), pages 390-397.
    15. Abuselidze, George, 2018. "Modern Challenges of Monetary Policy Strategies: Inflation and Devaluation Influence on Economic Development of the Country," MPRA Paper 99885, University Library of Munich, Germany, revised 26 Jan 2019.
    16. Paweł Gajewski, 2017. "Sources of Regional Inflation in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 55(3), pages 261-276, May.
    17. de Haas, R. & Brown, M. & Sokolov, V., 2015. "Regional Inflation, Financial Integration and Dollarization," Other publications TiSEM ef569549-635c-490c-b44c-2, Tilburg University, School of Economics and Management.
    18. Nagayasu, Jun, 2017. "Inflation and consumption of nontradable goods: Global implications from regional analyses," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 478-491.
    19. György Kocziszky & Dóra Szendi, 2015. "The Effects of Monetary Easing on Spatial Convergence in Hungary," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 11(02), pages 13-22.
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    21. Martin Brown & Ralph De Haas & Vladimir Sokolov, 2013. "Regional inflation and financial dollarisation," Working Papers 163, European Bank for Reconstruction and Development, Office of the Chief Economist.

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    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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