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One TV, One Price?

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

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. Copyright © The editors of the "Scandinavian Journal of Economics" 2010 .

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Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 112 (2010)
Issue (Month): 4 (December)
Pages: 753-781

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Handle: RePEc:bla:scandj:v:112:y:2010:i:4:p:753-781
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