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Les prix automobile dans l'Union Européenne : y a-t-il eu convergence depuis 1993 ?

Listed author(s):
  • Guillaume Gaulier
  • Séverine Haller

This paper analyses movements in automobile-price differentials between European Union countries from 1993 to 1999. Microeconomic data for selling prices of the principal models are used to construct price series for countries using an econometric hedonic-price model. It is shown that, since the introduction of the Single Market, there has been no convergence (sigma convergence, i.e., reduction in dispersion) of the pre-tax prices applied in the various countries of the Union. However, there is a convergence mechanism operating (beta convergence), but this has not been translated into a reduction in price differentials, mainly because of currency fluctuations. Taxation varies widely from one country to another and has a considerable impact on the dispersion of pre-tax prices. The disappearance of currency fluctuations between countries belonging to the euro zone should make it possible for arbitrage mechanisms to play their full role and lead to a genuine reduction in price differentials.

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Article provided by La Documentation Française in its journal Economie & prévision.

Volume (Year): 157 (2003)
Issue (Month): 1 ()
Pages: 83-96

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Handle: RePEc:cai:ecoldc:ecop_157_0083
Contact details of provider: Web page: http://www.cairn.info/revue-economie-et-prevision.htm

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  1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
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  9. repec:adr:anecst:y:1989:i:15-16:p:06 is not listed on IDEAS
  10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
  11. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
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  13. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
  14. Shang-Jin Wei & David C. Parsley, 1995. "Purchasing Power Disparity During the Floating Rate Period: Exchange Rate Volatility, Trade Barriers and Other Culprits," NBER Working Papers 5032, National Bureau of Economic Research, Inc.
  15. Jose M. Campa & Holger C. Wolf, 1997. "Is Real Exchange Rate Mean Reversion Caused By Arbitrage?," NBER Working Papers 6162, National Bureau of Economic Research, Inc.
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  17. repec:dau:papers:123456789/6803 is not listed on IDEAS
  18. Pierre-Yves Hénin & Yannick Le Pen, 1995. "Les épisodes de la convergence européenne," Revue Économique, Programme National Persée, vol. 46(3), pages 667-677.
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