The Inflationary Consequences of a Currency Changeover on the Catering Sector: Evidence from the Michelin Red Guide
This paper examines the inflationary consequences of a currency changeover in the catering market. Empirical evidence from the Michelin Red Guide shows that: (i) differently from restaurants in non-euro countries, restaurants in the euro area experienced abnormal price increases just after the changeover; and (ii) among restaurants in the euro area, tourist restaurants are responsible for most of the abnormal price increases. These results suggest that proposed explanations for the changeover effect, such as menu adjustment and rounding up, are only part of the story. We present a simple model of the catering market that is consistent with the evidence. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2008.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 71 (2009)
Issue (Month): 1 (02)
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0305-9049|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edmund Cannon & Giam Pietro Cipriani, 2003.
"Euro-illusion: a natural experiment,"
Bristol Economics Discussion Papers
03/556, Department of Economics, University of Bristol, UK.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
- Milgrom, Paul & Roberts, John, 1986.
"Price and Advertising Signals of Product Quality,"
Journal of Political Economy,
University of Chicago Press, vol. 94(4), pages 796-821, August.
- Ernst Fehr & Jean-Robert Tyran, 2004.
"Money Illusion and Coordination Failure,"
CESifo Working Paper Series
1141, CESifo Group Munich.
- Fehr, Ernst & Tyran, Jean-Robert, 2004. "Money Illusion and Coordination Failure," IZA Discussion Papers 1013, Institute for the Study of Labor (IZA).
- Fehr, Ernst & Tyran, Jean-Robert, 2004. "Money Illusion and Coordination Failure," CEPR Discussion Papers 4283, C.E.P.R. Discussion Papers.
- Ernst Fehr & Jean-Robert Tyran, 2004. "Money illusion and coordination failure," University of St. Gallen Department of Economics working paper series 2004 2004-02, Department of Economics, University of St. Gallen.
- Ernst Fehr & Jean-Robert Tyran, . "Money Illusion and Coordination Failure," IEW - Working Papers 177, Institute for Empirical Research in Economics - University of Zurich.
- Russell Cooper & Thomas W. Ross, 1984. "Prices, Product Qualities and Asymmetric Information: The Competitive Case," Review of Economic Studies, Oxford University Press, vol. 51(2), pages 197-207.
- Ernst Fehr & Jean-Robert Tyran, 2001.
"Does Money Illusion Matter?,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1239-1262, December.
- Ernst Fehr & Jean-Robert Tyran, . "Does Money Illusion Matter?," IEW - Working Papers 012, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Jean-Robert Tyran, 2000. "Does Money Illusion Matter?," IEW - Working Papers 045, Institute for Empirical Research in Economics - University of Zurich.
- Wioletta Dziuda & Giovanni Mastrobuoni, 2009.
"The Euro Changeover and Its Effects on Price Transparency and Inflation,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 41(1), pages 101-129, 02.
- Giovanni Mastrobuoni & Wioletta Dziuda, 2005. "The Euro Changeover and its Effects on Price Transparency and Inflation," Carlo Alberto Notebooks 26, Collegio Carlo Alberto, revised 2006.
- In-Koo Cho & David M. Kreps, 1997.
"Signaling Games and Stable Equilibria,"
Levine's Working Paper Archive
896, David K. Levine.
- Gaiotti, Eugenio & Lippi, Francesco, 2005.
"Pricing Behaviour and the Introduction of the Euro: Evidence from a Panel of Restaurants,"
CEPR Discussion Papers
4893, C.E.P.R. Discussion Papers.
- Eugenio Gaiotti & Francesco Lippi, 2005. "Pricing behavior and the introduction of the euro: evidence from a panel of restaurants," Macroeconomics 0501029, EconWPA, revised 15 Feb 2005.
- Bart Hobijn & Federico Ravenna & Andrea Tambalotti, 2006.
"Menu Costs at Work: Restaurant Prices and the Introduction of the Euro,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 121(3), pages 1103-1131.
- Bart Hobijn & Andrea Tanbalotti & Federico Ravenna, 2005. "Menu Costs at Work: Restaurant Prices and the Introduction of the Euro," 2005 Meeting Papers 659, Society for Economic Dynamics.
- Bart Hobijn & Federico Ravenna & Andrea Tambalotti, 2004. "Menu costs at work: restaurant prices and the introduction of the euro," Staff Reports 195, Federal Reserve Bank of New York.
- Soetevent, Adriaan R., 2005. "Anonymity in giving in a natural context--a field experiment in 30 churches," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2301-2323, December.
- Kyle Bagwell & Michael Riordan, 1988.
"High and Declining Prices Signal Product Quality,"
808, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Yuk-Shee Chan & Hayne Leland, 1982. "Prices and Qualities in Markets with Costly Information," Review of Economic Studies, Oxford University Press, vol. 49(4), pages 499-516.
When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:71:y:2009:i:1:p:111-133. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.