Local retail prices, product variety and neighborhood change
Borraz, F., Carozzi, F.
, Gonzalez Pampillon, N. & Zipitría, L.
(2024).
Local retail prices, product variety and neighborhood change.
American Economic Journal: Economic Policy,
16(1), 1 - 33.
https://doi.org/10.1257/pol.20210817
, Gonzalez Pampillon, N. & Zipitría, L.
(2024).
Local retail prices, product variety and neighborhood change.
American Economic Journal: Economic Policy,
16(1), 1 - 33.
https://doi.org/10.1257/pol.20210817
We study how local grocery markets within a city are affected by changes in housing markets. Our empirical strategy exploits a shift in the spatial distribution of construction activity induced by a large-scale, place-based tax exemption in the city of Montevideo. The introduction of new housing stock induced by the policy causes a reduction in grocery prices of 2.3 percent and an increase in locally available product varieties. Using insights from a multiproduct model of imperfect competition and estimates for different types of stores, we show these changes are the result of incumbents' response to an increase in local demand.
Explore Further
- R31 - Housing Supply and Markets
- R23 - Regional Migration; Regional Labor Markets; Population
- O18 - Regional, Urban, and Rural Analyses
- L81 - Retail and Wholesale Trade; Warehousing; e-Commerce
- R22 - Other Demand
- R38 - Government Policies; Regulatory Policies
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Carozzi, F., González-Pampillón, N., Borraz, F. & Zipitría, L.
(2024).
Data and Code for: Local Retail Prices, Product Variety and Neighborhood Change.
[Dataset]. OpenICPSR.
https://doi.org/10.3886/e183621