@article{CS2019,<br />
    author = "Ryan Chahrour and Luminita Stevens",<br />
    title = "{Price dispersion and the border effect}",<br />
    journal = {Journal of Monetary Economics},<br />
	doi = "https://doi.org/10.1016/j.jmoneco.2019.09.014",<br />    
	volume={116},<br />    
	pages={135--146},<br />    
	year={2020},<br />    
	keywords = "Law of one price, Real exchange rates, Trade barriers, Home bias",<br />
    abstract = "{Cross-country price differences could reflect regional market segmentation within countries or national segmentation at the border. 
	In a search-based model of price setting, identifying national versus regional segmentation requires data on regional trade flows. A calibration 
	to U.S. and Canadian data implies predominantly regional frictions: U.S. producers are three times more likely to sell in their home region than 
	another U.S. region and Canadian producers are seven times more likely to sell in their home region than another Canadian region. Frictions 
	vis-a-vis foreign regions are only slightly higher. Models that ignore regional segmentation can misstate the severity of frictions at the border.}"
}