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Structural changes and deviations from the Purchasing Power Parity within the euro area

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Author Info
Daniele Antonucci
Alessandro Girardi

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Abstract

This study focuses on macroeconomic convergence within the euro area over the period 1984--2002. The theoretical framework builds on the generalized purchasing power parity hypothesis, which is empirically tested using vector error correction models with broken deterministic components. The euro area turns out to be an integrated entity, even if national economies still exhibit a certain degree of heterogeneity. The results also suggest that up to now the 'euro-effect’ in fostering integration within the euro area has been quite weak.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Financial Economics.

Volume (Year): 16 (2006)
Issue (Month): 1-2 (January)
Pages: 185-198
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Handle: RePEc:taf:apfiec:v:16:y:2006:i:1-2:p:185-198

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  1. Andrén, Niclas & Oxelheim, Lars, 2006. "Producer Prices in the Transition to a Common Currency," Working Paper Series 668, Research Institute of Industrial Economics. [Downloadable!]
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This page was last updated on 2009-12-5.

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