Prices and Competition: Evidence from a Social Program

Produced by: 
Universidad de la República - Uruguay
Available from: 
December 2015
Paper author(s): 
Emilio Aguirre
Pablo Blanchard
Fernando Borraz
Joaquín Saldain
Topic: 
Microeconomics - Competition - Productivity
Fiscal Policy - Public and Welfare Economics
Year: 
2016

We use a micro-price dataset to analyze the impact on prices of a social program in Uruguay that allow the beneficiaries to purchase food, beverages and cleaning items exclusively in certain small retailers. We find that the beneficiaries pay significantly higher prices in relation to prices in other retailers. We find this result for the whole country with the exception of areas with the highest retailer density in the capital city, Montevideo.

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Research section: 
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