Prices in Indonesia Converge, Reducing Variability and Boosting Economic Equality.
The study looked at how prices of different products in Indonesia changed over time. They found that prices across cities in Indonesia became more similar over the years. Prices of the same product varied less between cities than prices of different products within the same city. The speed at which prices became similar depended on the type of product, with perishable goods taking about 9 months, non-perishable goods taking 32-36 months, and services taking 18-19 months. The initial price difference between cities affected how quickly prices became similar, but the distance between cities did not.