Local Retail Prices, Product Variety, and Neighborhood Change

• 成果类型: Article
• 署名作者: Borraz, Fernando; Carozzi, Felipe; Gonzalez-Pampillon, Nicolas; Zipitria, Leandro
• 署名单位: Universidad de la Republica, Uruguay; Universidad de Montevideo; University of London; London School Economics & Political Science; Universidad de la Republica, Uruguay
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20210817
• 发表日期: 2024
• 页码: 1-33
• 关键词: Gentrification

摘要

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. (JEL L81, O18, R22, R23, R31, R38)