ABSTRACT OF THE THESIS



The Spatial Incidence of Inflation

In the United States 1967-1971:



An Economic-Geographic Perspective 



by MURRAY SABRIN, Ph.D.

Thesis Director: Professor Michael R. Greenberg



The purpose of this study is to examine the differential impact of monetary expansion upon local activity.   Insofar as monetary expansion diffuses spatially through an economic system, the hypothesis tested is that discernable difference in local price level changes occur during the inflation cycle within the national urban-economic system.



Although the non-parametric tests employed do not fully substantiate statistically the differences in price level changes over time among the standard metropolitan statistical areas (SMSAs) grouped by population, region, or economic structure, the lack of comprehensive data sets was the most formidable shortcoming of the study.  First, 'the monetary and price data had to be interpolated for many SMSAs, thereby reducing their reliability.  Second, other data that could have confirmed the thesis were unavailable.  Moreover, the statistical testing did not reveal the nature of the consumer price indexes changes within the urban system.



In other words, a detailed analysis of the new money flows through the banking sector and into the private and public sectors would have uncovered the local economic impacts hypothesized in the study.



After the empirical analyses is undertaken, a data base or bank is constructed.  The purpose of this exercise is to demonstrate how an extensive study of the spatial incidence of inflation could be achieved.  That the spatial incidence of inflation should be an area of investigation is undeniable.  Past studies of inflation have caused on macro-economic phenomena.  This study rejects that approach and argues, even though it was unsuccessful in 'establishing a definitive spatial pattern or sequence during the inflation cycle, that the framework developed herein could lead to fruitful "micro" studies of the inflation cycle.