Europe Without Borders? The Effect of the Euro on Price Convergence
AbstractHas the introduction of the Euro reduced the economic significance of national borders across the Euro Area? This article extends Engel and Rogers well known work on border effects to cities across Western Europe over the period 1995â€”2004. Although cross-border prices across the Euro Area are still more volatile than within-country prices, the importance of the border has diminished since the euro was introduced in 1999. The impact of the common currency on the border effect varies by country size, with the largest decreases occurring between larger Euro countries. Although cross-border price volatility has not changed between the United Kingdom and large Euro countries, volatility has actually increased between the small Euro countries and the United Kingdom. These results are consistent with the fact that exchange rates are more likely to adjust to price differentials between small countries than between large countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by in its journal International Regional Science Review.
Volume (Year): 33 (2010)
Issue (Month): 1 (January)
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Méjean, Isabelle & Schwellnus, Cyrille, 2009.
"Price convergence in the European Union: Within firms or composition of firms?,"
Journal of International Economics,
Elsevier, vol. 78(1), pages 1-10, June.
- Isabelle Méjean & Cyrille Schwellnus, 2009. "Price Convergence in the European Union: Within Firms or Composition of Firms?," Working Papers 2009-03, CEPII research center.
- Isabelle Méjean & Cyrille Schwellnus, 2009. "Price Convergence in the European Union: Within Firms or Composition of Firms?," Working Papers hal-00354190, HAL.
- Mohsin, Hasan M & Gilbert, Scott, 2010. "Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS," MPRA Paper 27901, University Library of Munich, Germany.
- Hasan Muhammad Mohsin & Scott Gilbert, 2010. "The Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 439â448.
- Jan-Egbert Sturm & Ulrich Fritsche & Michael Graff & Michael Lamla & Sarah Lein & Volker Nitsch & David Liechti & Daniel Triet, 2009. "The euro and prices: changeover-related inflation and price convergence in the euro area," European Economy - Economic Papers 381, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Leon Podkaminer, 2013. "Persistent gaps between purchasing power parities and exchange rates under the law of one price: a puzzle (partly) explained?," Bank i Kredyt, National Bank of Poland, Economic Institute, vol. 44(4), pages 333-352.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.