This paper explores regional price variation in early twentieth-century Spain. Using consumer price information from the bulletins published by the Instituto de Reformas Sociales between 1910 and 1920, we build a dataset with a total of 40,581 quotes covering 22 items for each of the 49 provinces. We then estimate provincial price levels following a country-product-dummy (CPD) approach. Our findings suggest that spatial price variation existed across Spanish provinces. In line with the Balassa–Samuelson conjecture, consumer prices and productivity levels were somewhat related. Additionally, it is shown that prices rose in all provinces after the outbreak of World War I. Even more, it appears that this demand-shock brought about spatial asymmetries in price growth.

中文翻译：

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二十世纪初西班牙的区域价格：一种国家-产品-虚拟方法

本文探讨了20世纪初西班牙的区域价格差异。利用改革协会在1910年至1920年之间发布的公告中的消费者价格信息，我们建立了一个数据集，包含40,581个报价，涵盖49个省中的每个省的22个项目。然后，我们根据国家产品虚拟模型（CPD）的方法估算省级价格水平。我们的发现表明，西班牙各省之间存在空间价格差异。与Balassa-Samuelson猜想一致，消费者价格和生产率水平有些相关。此外，还表明，第一次世界大战爆发后，所有省份的价格都在上涨。更甚者，这种需求冲击似乎导致价格上涨的空间不对称性。