The Law of One Price without the Border: The Role of Distance versus Sticky Prices
构建了一个包含名义刚性和运输成本的单国两城市模型，预测控制距离后价格调整频率低的商品的一价定律偏离更小。利用日本城市级零售价格数据验证，发现名义刚性的距离等价物可媲美国际一价定律文献中的“边界宽度”，质疑了将距离简单视为市场分割指标的做法。
We build a single-country, two-city, model with nominal rigidities and transport costs which predicts that variation of LOP deviations is lower for goods with infrequent price adjustment after controlling for distance. We adapt the Engel and Rogers (1996) regression to analyse Japanese retail prices at the city level and find that results are consistent with the theoretical predictions. The regression results also suggest that the distance equivalent of nominal rigidities can be as large as the 'width' of the border found in the literature on international LOP, casting doubt on casual interpretations of distance as a metric for market segmentation. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010.