Activities per year
Abstract
This study proposes a new measure of the tradability of 120+ commodities based on price dispersion. This approach is used to construct price indices of tradables and non-tradables for 150+ countries. The expenditure share of tradables is lower for richer countries, while the relative price of non-tradables, which plays an important role in the determination of real exchange rates, is higher. Secondly, a common-factor approach (based on principal components) is introduced to compress the large volume of information on prices and quantities consumed globally. We find that cross-commodity correlations are higher for prices than for consumption. In addition, income is responsible for most of the variation in the first principal component of consumption but explains less of the first price component. This suggests consumption are driven primarily by domestic factors, while prices are determined by factors outside the country, along the lines of the Purchasing Power Parity theory.
Original language | English |
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Pages (from-to) | 443-473 |
Number of pages | 31 |
Journal | Review of Income and Wealth |
Volume | 69 |
Issue number | 2 |
Early online date | 5 Jul 2022 |
DOIs | |
Publication status | Published - Jun 2023 |
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Dive into the research topics of 'Understanding International Price and Consumption Disparities'. Together they form a unique fingerprint.Prizes
Activities
- 2 Contribution or participation in a conference
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Vietnam's Business and Economics Research Conference
Vo, L. (Keynote speaker/Invited speaker), Vo, L. (Chair) & Vo, L. (Participant)
20 Jul 2019 → 22 Jul 2019Activity: Conferences and workshops › Contribution or participation in a conference
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12th International Research Conference – Central Bank of Sri Lanka
Vo, L. (Participant)
8 Dec 2019 → 9 Dec 2019Activity: Conferences and workshops › Contribution or participation in a conference
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The Law of One Food Price
Clements, K., Si, J. & Vo, L. H., Feb 2023, In: Open Economies Review. 34, 1, p. 195-216 22 p.Research output: Contribution to journal › Article › peer-review
2 Citations (Scopus) -
Regional convergence of nonrenewable energy consumption in Vietnam
Vo, D., Vo, L. H. & Ho, C. M., Oct 2022, In: Energy Policy. 169, 12 p., 113194.Research output: Contribution to journal › Article › peer-review
9 Citations (Scopus) -
Global Consumption Patterns, Quality and Food Demand
Clements, K. & Vo, L. H., 28 Oct 2021, (Unpublished) Department of Economics, UWA, 95 p. (Economics Discussion Papers).Research output: Working paper › Discussion paper