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Differences in Relative Prices in the EU

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  • Palenmark, Sirly

    (Department of Economics, Lund University)

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    Abstract

    Price levels differ considerably between the member states of the EU. This paper examines what causes these price differences. Disaggregated price level indexes for 13 capital cities in the EU are used in order to investigate differences in relative prices during the 1990s. It is found that such variables as physical distance, tax levels, participation in the EMU and income levels explain differences in price levels.

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    File URL: http://www.nek.lu.se/publications/workpap/Papers/WP04_16.pdf
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    Bibliographic Info

    Paper provided by Lund University, Department of Economics in its series Working Papers with number 2004:16.

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    Length: 21 pages
    Date of creation: 21 May 2004
    Date of revision:
    Handle: RePEc:hhs:lunewp:2004_016

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    Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
    Phone: +46 +46 222 0000
    Fax: +46 +46 2224613
    Web page: http://www.nek.lu.se/
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    Related research

    Keywords: Relative prices; Purchasing Power Parity; Law of One Price;

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