APPENDIX TABLE I
APPENDIX TABLE II
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We would like to thank Charles Engel, Andy Rose and seminar participants at the IMF and the Hong Kong Monetary Authority for very helpful comments. The views presented in this paper are those of the authors and do not necessarily reflect the views of the IMF or any other institution with which they are or have been affiliated.
That is, Rose and his co-authors control for a wide variety of additional country specific variables, such as common language, colonial ties, contiguity, etc.
In the figure we continue to focus on q(ij,t). That is, good specific effects have been removed.
In principle, given that our focus is on the dispersion in prices, the tendency for positive and negative values to cancel should not be a concern (since dispersion is measured around the mean).