Mark, Nelson C.; Sonora, Robert; Cecchetti, Stephen - Oesterreichische Nationalbank - 1998
We study the dynamics of price indices for major U.S. cities. Using panel econometric methods, we find that relative price levels among cities mean revert, but at a surprisingly slow rate. In a panel of 15 cities from 1918 to 1995, we estimate the half life of convergence to be approximately 9...
