Abstract
AbstractDifference in terms of cost-of-living between rural and urban areas is a frequent theoretical analysis in Regional Economics. Lack of routine measures in rural areas does not usually allow to observe changes in rural costs. We adapt the Big Mac index, typically used to measure purchasing power parity between countries, as a potential quick and inexpensive indicator of short-term local price variations. With a national random sample of McDonald's stores repeated in time, we find prices grew slightly faster in rural areas than in urban areas. Spatial transmission of prices seems to be limited to very localized effects, meaning that rural price increases are not due to urban spillover effects.
Funder
National Institute of Food and Agriculture
Ministerio de Ciencia e Innovación
Universidad de Oviedo
Publisher
Springer Science and Business Media LLC
Subject
General Social Sciences,General Environmental Science