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One TV, One Price?

Author

Listed:
  • Jean M. Imbs
  • Haroon Mumtaz
  • Morten O. Ravn
  • Hélène Rey

Abstract

We study television prices across European countries and regions. Quality as measured by observable characteristics of televisions accounts for a large share of the international dispersion in prices. Rich economies tend to consume higher‐quality goods, but sizeable international price differentials exist even for identical televisions. The valuation of brands differs significantly across borders. EMU countries display lower price dispersion but not necessarily because of the single currency. Absolute price differentials and relative price volatility increase with exchange rate volatility, but not with transport costs. Exchange rate pass‐through is low in the short run but high in the long run.

Suggested Citation

  • Jean M. Imbs & Haroon Mumtaz & Morten O. Ravn & Hélène Rey, 2010. "One TV, One Price?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(4), pages 753-781, December.
    • Handle: RePEc:bla:scandj:v:112:y:2010:i:4:p:753-781
    DOI: 10.1111/j.1467-9442.2010.01631.x
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    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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