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The Interdependence between the Level of Domestic Prices and the Price Level in the Developed Countries

Author

Listed:
  • Angelica BACESCU-CARBUNARU

    () (The Bucharest Academy of Economic Studies, Romania)

  • Monica CONDRUZ-BACESCU

    () (The Bucharest Academy of Economic Studies, Romania)

Abstract

The article deals with the controversial issue of price harmonization practiced in the European Union. Therefore, we take into account the differences between national economies of member countries and the time difference of these economies in EU, a thing that imposes the establishment of different harmonization periods. It is also raised the issue of price harmonization: by increasing the prices of commercial and non-commercial products in developed countries or by increasing the prices in less developed countries. There are also analysed different concepts and solutions, with their advantages and disadvantages, reaching the conclusion that prices, salaries and profits on the domestic market of a country have to be adapted to the reality in each country.

Suggested Citation

  • Angelica BACESCU-CARBUNARU & Monica CONDRUZ-BACESCU, 2011. "The Interdependence between the Level of Domestic Prices and the Price Level in the Developed Countries," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(3), pages 420-431, July.
  • Handle: RePEc:rom:rmcimn:v:12:y:2011:i:3:p:420-431
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    File URL: http://www.rmci.ase.ro/no12vol3/03.pdf
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    References listed on IDEAS

    as
    1. Alm, James & Torgler, Benno, 2006. "Culture differences and tax morale in the United States and in Europe," Journal of Economic Psychology, Elsevier, vol. 27(2), pages 224-246, April.
    2. Bird, Richard M. & Martinez-Vazquez, Jorge & Torgler, Benno, 2008. "Tax Effort in Developing Countries and High Income Countries: The Impact of Corruption, Voice and Accountability," Economic Analysis and Policy, Elsevier, vol. 38(1), pages 55-71, March.
    3. Bird,Richard & Gendron,Pierre-Pascal, 2011. "The VAT in Developing and Transitional Countries," Cambridge Books, Cambridge University Press, number 9781107401440, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    single price; commercial products and services; non-commercial products and services; Balassa-Samuelson effect; Pierre-Noel Giraud theory; purchasing power parity.;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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