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The influence of inflation on differential price changes across European markets

Author

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  • Christos Ioannidis
  • Mick Silver

Abstract

This paper provides the results of an empirical study of the dispersion of consumer price inflation for each of 19 product groups across 11 European countries using monthly data covering the 1980s. The study relates the degree of inflation dispersion in a market to the mean inflation rate. Thus, we show how differential price changes across European markets are influenced by inflation. A model of asymmetric response of relative inflation variability to inflation is tested. Hypotheses are also tested regarding broad categories of traded, nontraded, and regulated products, and results are provided for individual product groups. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Christos Ioannidis & Mick Silver, 2001. "The influence of inflation on differential price changes across European markets," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(1), pages 31-47, March.
    • Handle: RePEc:kap:atlecj:v:29:y:2001:i:1:p:31-47
    DOI: 10.1007/BF02299930
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    References listed on IDEAS

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