Benefits of Price Convergence: Speculative Calculations, The
AbstractPrice divergence is readily apparent to anyone who shops. Travelers from Manchester to London, or from Chicago to Paris, are hit by sticker shock. Products ranging from London Fog raincoats to Viagra are available over the Internet at half their retail store prices. Common experience tells us that prices for identical products differ between countries, between cities, even between neighboring shops. On the other hand, common experience also tells us that open markets and greater competition will force a degree of price convergence, if not identical prices.This monograph presents speculative calculations that illustrate potential benefits from price convergence between countries. The authors take a fresh look at global economic integration by examining existing price divergence, and possible price convergence, across a range of consumer goods and then calculate the potential benefits of price convergence on a country-by-country basis and for the world as a whole. This study examines the potential benefits from price convergence resulting from more competition and market integration, not perfect competition and market integration. The authors calculate these benefits assuming that the world economy can attain the same degree of competition and market integration--and hence price convergence--as exists within the United States.
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 InfoThis book is provided by Peterson Institute for International Economics in its series Peterson Institute Press: All Books with number pa65 and published in 2002.
Note: Policy Analyses in International Economics 65
Contact details of provider:
Postal: 1750 Massachusetts Ave., NW, Washington, DC
Web page: http://bookstore.piie.com/
More information through EDIRC
Other versions of this item:
- Tony Warren & Gary Clyde Hufbauer & Erika Wada, 2002. "Benefits of Price Convergence: Speculative Calculations, The," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number pa65, November.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yin-Wong Cheung & Jude Yuen, 2004.
"An Output Perspective on a Northeast Asia Currency Union,"
CESifo Working Paper Series
1250, CESifo Group Munich.
- Yin-wong Cheung & Jude Yuen, 2005. "An Output Perspective on a Northeast Asia Currency Union," Working Papers 162005, Hong Kong Institute for Monetary Research.
- Maria Cipollina & Luca Salvatici, 2008.
"Measuring Protection: Mission Impossible?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(3), pages 577-616, 07.
- Romano, Donato, 2006. "Agriculture in the Age of Globalization," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25253, International Association of Agricultural Economists.
- Yin-Wong Cheung & Jude Yuen, 2005.
"The Suitability Of A Greater China Currency Union,"
Pacific Economic Review,
Wiley Blackwell, vol. 10(1), pages 83-103, 02.
- Syed A. Basher & Josep Lluis Carrión-i-Silvestre, 2008. "Price level convergence, purchasing power parity and multiple structural breaks: An application to US cities," Working Papers XREAP2008-08, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2008.
- John H. Rogers, 2002. "Monetary union, price level convergence, and inflation: how close is Europe to the United States?," International Finance Discussion Papers 740, Board of Governors of the Federal Reserve System (U.S.).
- Rogers, John H., 2007. "Monetary union, price level convergence, and inflation: How close is Europe to the USA?," Journal of Monetary Economics, Elsevier, vol. 54(3), pages 785-796, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster).
If references are entirely missing, you can add them using this form.