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Convergence of household expenditures of the EU-member and acceding countries in the years 1995-2002

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  • M. Ševela

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

Abstract

The convergence in household consumption expenditure contributes to the aims defined in the Treaty of the European Union. Consumption expenditure convergence also restricts the impacts of asymmetric shocks under the bounded inner market mobility of goods, services and sources. The paper concentrates on convergence level and dynamics of consumption expenditures between the EU member and acceding countries in years 1995-2002. There are significant differences in absolute values of convergence expenditures, in prices levels of consumption goods and consumption structures among the groups of countries in year 1995. During the eight years the gap became smaller measured by the structure and absolute level of expenditures recalculated on purchasing power parity. Panel data analysis of food share in consumption disclosed the influence of total consumption expenditures while the impact of relative price of commodity is ambiguous.

Suggested Citation

  • M. Ševela, 2004. "Convergence of household expenditures of the EU-member and acceding countries in the years 1995-2002," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 50(7), pages 301-308.
    • Handle: RePEc:caa:jnlage:v:50:y:2004:i:7:id:5206-agricecon
    DOI: 10.17221/5206-AGRICECON
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    References listed on IDEAS

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    1. Hans–Werner Sinn, 2002. "EU Enlargement and the Future of the Welfare State," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 104-115, February.
    2. Stephen Cecchetti & Nelson C. Mark & Robert Sonora, 1998. "Price Level Convergence Among United States Cities: Lessons for the European Central Bank," Working Papers 32, Oesterreichische Nationalbank (Austrian Central Bank).
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