Search Results
Working Paper
Small Price Responses to Large Demand Shocks
We study the pricing response of U.S. supermarkets to large demand shocks triggered by labor conflicts, mass population relocation, and shopping sprees around major snowstorms and hurricanes. Our focus on demand shocks is novel in the empirical literature that uses large datasets of individual data to bridge micro price behavior and aggregate price dynamics. We find that large swings in demand have, at best, modest effects on the level of retail prices, consistent with flat short- to medium-term supply curves. This finding holds even when shocks are highly persistent and even though stores ...
Home Values after a Tornado: What Can St. Louis Learn from Little Rock’s 2023 Experience?
Undamaged houses near the path of a 2023 tornado that struck Little Rock saw a sharp, short-term drop in prices, but this effect lasted less than a year.