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Examining goods market integration in the Eurozone: evidence obtained from an analysis of price-setting by UK automobile exporters

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  • Jacint Balaguer

    () (Universitat Jaume I)

Abstract

This paper investigates whether the pervasive dispersion of automobile prices within the Eurozone (1999-2006) is caused by the existence of market segmentation and divergences in the market structures. The results concerning the Pricing to Market behavior of the United Kingdom exporters indicate that it is heterogeneous across the Eurozone countries, which suggests that the goods markets are not totally integrated.

Suggested Citation

  • Jacint Balaguer, 2007. "Examining goods market integration in the Eurozone: evidence obtained from an analysis of price-setting by UK automobile exporters," Economics Bulletin, AccessEcon, vol. 6(36), pages 1-6.
  • Handle: RePEc:ebl:ecbull:eb-07f10018
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    References listed on IDEAS

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    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    2. Charles Engel & John H. Rogers, 2004. "European product market integration after the euro," Economic Policy, CEPR;CES;MSH, vol. 19(39), pages 347-384, July.
    3. Gagnon, Joseph E. & Knetter, Michael M., 1995. "Markup adjustment and exchange rate fluctuations: evidence from panel data on automobile exports," Journal of International Money and Finance, Elsevier, vol. 14(2), pages 289-310, April.
    4. Goldberg, Pinelopi K. & Verboven, Frank, 2005. "Market integration and convergence to the Law of One Price: evidence from the European car market," Journal of International Economics, Elsevier, vol. 65(1), pages 49-73, January.
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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