R files for the paper "Varieties as a Source of Law of One Price Deviations", published in International Economics, Volume 172, December 2022, Pages 1-14.
This repository provides all files to create the database on price differences, create the dummies on variety and competition, run descriptive statistics, and all regressions. Files are created for the R program.
The first four files create the databases (in levels and differences) and are needed for the analysis.
0-A-create-databases.R: merge price database with product and store information. 0-B-difference-database.R: create price difference database.
1-tables-figures.R.: create all tables and figures. Tables-10-11-latex.R create the tables based on the information collected in the code
Correlation Regressions: chp4-regressions.R: run regressions for Chapter 4.
Causality: chp5-database.R: Create the causality database. chp5-figures-regressions.R: Regressions and figures for Chapter 5.