We reexamine the evidence for border effects in deviations from the law of one price, using data for consumer prices … rather than price index data. We find evidence of border effects both in the levels of prices and the percentage change in … prices. Even accounting for distance between cities and relative population sizes, we find that the absolute difference …

We use new disaggregated data on consumer prices to determine why there is variability in prices of similar goods … purely a result of market segmentation or do sticky nominal prices play a role? We also examine how the degree of tradability … the variation in prices between pairs of cities. But we also find that nominal price stickiness plays an even more …

.S. cities and Canadian cities for 14 categories of consumer prices to examine the nature of the deviations from the law of one … price. The distance between cities explains a significant amount of the variation in the prices of similar goods in … prices as adding 2500 miles between cities. …

variability, suggesting a link to sticky nominal prices. We also find that distance can explain failures of LOOP, suggesting the …