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The Euro and Price Convergence in Central and Eastern Europe

Author

Listed:
  • Filip Lurka

    (University of Cambridge)

  • Paul Kattuman

    (University of Cambridge)

Abstract

We examine the effect of the adoption of the euro by Central and Eastern European countries, on the convergence of their prices vis-´a-vis the euro zone. Allowing for staggered adoption, we estimate the euro treatment effect using a difference-in-differences approach. We find strong and robust, positive convergence effects, albeit with some heterogeneity.

Suggested Citation

  • Filip Lurka & Paul Kattuman, 2023. "The Euro and Price Convergence in Central and Eastern Europe," International Journal of Central Banking, International Journal of Central Banking, vol. 19(1), pages 341-364, March.
    • Handle: RePEc:ijc:ijcjou:y:2023:q:1:a:7
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    References listed on IDEAS

    as
    1. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
    2. Pesaran, M. Hashem, 2015. "Time Series and Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780198759980.
    3. Charles Engel & John H. Rogers, 2004. "European product market integration after the euro [‘The law of one price in Scandinavian duty-free stores,’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 19(39), pages 348-384.
    4. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
    5. Parsley, David & Wei, Shang-Jin, 2008. "In search of a euro effect: Big lessons from a Big Mac Meal?," Journal of International Money and Finance, Elsevier, vol. 27(2), pages 260-276, March.
    6. repec:oup:ecpoli:v:19:y:2004:i:39:p:347-384 is not listed on IDEAS
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F01 - International Economics - - General - - - Global Outlook

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