Explaining the Big Mac Urban‐Rural Price Gap in the United States

Dados Bibliográficos

ID21353033
AutoresFernanda Alfaro (0000-0001-9673-7143, Department of Agricultural, Food, and Resource Economics Michigan State University East Lansing Michigan USA, autor correspondente), Scott Loveridge (0000-0002-0665-350X, Department of Agricultural, Food, and Resource Economics Michigan State University East Lansing Michigan USA), Dusan Paredes (0000-0002-7090-5919, Department of Agricultural, Food, and Resource Economics Michigan State University East Lansing Michigan USA), Monique Skidmore (0000-0002-6396-9519, Department of Agricultural, Food, and Resource Economics Michigan State University East Lansing Michigan USA)
Ano2026
Volume66
Fascículo1
Páginas124-139
Data de publicação2026-01-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of Regional Science (JOURNAL)
Identificadores do periódicoISSN: 0022-4146 • E-ISSN: 1467-9787
EditoraWiley (PUBLISHER • GB)
DOI10.1111/jors.70022
OpenAlexW4413997885
IdiomaEN
Referências citadas55

The Law of One Price (LOP) is a fundamental economic principle, yet its application in regional studies often excludes rural areas due to data limitations. We analyze price equalization across the US using Big Mac prices to address this gap. Our analysis focuses on three key questions: (i) Is there evidence of price equalization between urban and rural areas in the US over the short and long run? (ii) What factors drive urban‐rural price equalization? (iii) How does inflation influence the behavior of price equalization? Our findings reveal that inflation affects the speed of urban‐rural gap convergence and determines the key variables that explain the price gap

Business · Economics · Consumer Retail Behavior Studies · Housing Market and Economics · Regional Economics and Spatial Analysis