Price Index Convergence Among United States Cities*
用面板计量方法研究1918-1995年美国19个主要城市的价格指数动态，发现相对价格水平以极慢速度均值回归，半衰期约9年，并解释为运输成本、大小冲击调整速度差异及非贸易品价格的影响。
We study the dynamics of price indices for major U.S. cities using panel econometric methods and find that relative price levels among cities mean revert at an exceptionally slow rate. In a panel of 19 cities from 1918 to 1995, we estimate the half‐life of convergence to be approximately nine years. The surprisingly slow rate of convergence can be explained by a combination of the presence of transportation costs, differential speeds of adjustment to small and large shocks, and the inclusion of nontraded goods prices in the overall price index.