Convergence in price levels across US cities

► This paper examines whether price levels are converging across 17 major cities in US over the 1918-2008 period. ► The methodology is relied upon the novel OLS estimator introduced by Bao, Y., Dhongde, S., 2009. Testing convergence in income distribution. Oxford Bulletin of Economics and Statistics 71, 295-302. ► We find that price levels are converging, and the half-life of convergence is estimated to be approximately 5-7 years.