Price dispersion across Indian states: A club convergence analysis

This study examines the price convergence across 28 Indian states and 7 union territories at an aggregate and subgroups level over the period 2011–12 to 2017–18. We employ a novel approach of Phillips and Sul panel convergence technique, which accounts for transitional dynamics and heterogeneity in...

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Bibliographic Details
Published in:Journal of public affairs 2021-02, Vol.21 (1), p.n/a
Main Authors: Jangam, Bhushan Praveen, Akram, Vaseem, Sahoo, Pradipta Kumar
Format: Article
Language:English
Subjects:
Clubs
Convergence
Economic integration
Heterogeneity
Policy making
Prices
Resource allocation
Standard of living
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Summary:This study examines the price convergence across 28 Indian states and 7 union territories at an aggregate and subgroups level over the period 2011–12 to 2017–18. We employ a novel approach of Phillips and Sul panel convergence technique, which accounts for transitional dynamics and heterogeneity in the panel. The results suggest price divergence and evidence of clubs across Indian states at both aggregate and subgroup level. The outcomes of this study help policymakers in addressing the price dispersion across states, which in turn improves the market integration, allocation of resources, and standard of living.
ISSN:1472-3891
1479-1854
DOI:10.1002/pa.2134