TY - JOUR
T1 - Inflation, search costs and price dispersion
AU - Paroush, Jacob
PY - 1986
Y1 - 1986
N2 - This paper assumes that the individual's transaction motive for holding real balances is, at least in part, an input into his search activity for lower prices. By using this assumption along with some basic results from search theory, we prove the existence of positive correlation between inflation rate and price dispersion. Many empirical studies support this result.
AB - This paper assumes that the individual's transaction motive for holding real balances is, at least in part, an input into his search activity for lower prices. By using this assumption along with some basic results from search theory, we prove the existence of positive correlation between inflation rate and price dispersion. Many empirical studies support this result.
UR - http://www.scopus.com/inward/record.url?scp=46149130227&partnerID=8YFLogxK
U2 - 10.1016/0164-0704(86)90064-9
DO - 10.1016/0164-0704(86)90064-9
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AN - SCOPUS:46149130227
SN - 0164-0704
VL - 8
SP - 329
EP - 336
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
IS - 3
ER -