چکیده:
This research examines the hypothesis of convergence of the consumer price index among the provinces of the country using cluster analysis during the period 1382 to 1395. Despite many similarities between the provinces of the country in terms of factors affecting the general price level, the results obtained based on cluster analysis do not generally confirm the convergence of price levels among the provinces of Iran. However, three convergent clusters are observed among the provinces of the country. 19 provinces are in the first cluster, 3 provinces in the second cluster, 4 provinces in the third cluster, and Tehran province forms a non-convergent cluster. There is no specific relationship between the provinces located in each cluster based on the level of development, geography, and population. The rejection of the hypothesis of convergence of the consumer price index and its clustering indicates fragmentation of markets in Iran, differences in the level of living costs and its sustainability over time, and different effects of monetary policies on price levels in the provinces. JEL Classification: C32, E31, F15
خلاصه ماشینی:
com Date Received: 2017/08/30 Date Accepted: 2018/09/05 Abstract This research investigates the hypothesis of convergence of the consumer price index of the country's provinces using cluster analysis during the period 1382 to 1395.
Despite many similarities between the provinces of the country in terms of factors affecting the general price level, the results obtained based on cluster analysis do not generally confirm the existence of price level convergence among the provinces of Iran.
Rejection of the hypothesis of convergence of the consumer price index and clustering indicates fragmentation of markets in Iran, differences in the level of living costs and its sustainability over time, and different effects of monetary policies on price levels in the provinces.
Raising this question, which implicitly suggests the possibility of price divergence, is while one of the fundamental implications of the purchasing power parity theory is predicting price convergence at the level of regions and different provinces of the country (Rogoff 1, 1996; Christo2 et al.
In this research, the cluster approach of Philips and Sul (2007) has been used to investigate the convergence of the general price level among the provinces of the country.
Fritsche & Kuzin 4 (2011), using the Phillips and Sol cluster analysis approach, investigated the convergence in price levels, labor unit costs, income, and productivity at the European level during the period of 1960 to 2006.
6- Conclusion In the present research, the hypothesis of convergence or reduction of dispersion among the general price level in the provinces of Iran was investigated using cluster analysis.
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