Price Convergence under EMU? First Estimates
This paper examines whether European monetary union has lowered the degree of price dispersion among member countries. A number of different estimation methods are applied to four independent datasets containing prices of identical goods. While the results reported in the paper vary somewhat across goods, they provide little overall support of the European Commission's claim that the single currency would significantly deepen market integration among the euro-zone countries. Even though this should be viewed as preliminary evidence, it does suggest that there are other, more important impediments to market integration in the EU.
|Date of creation:||04 Jun 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Office of the Secretary-General, Rm E35, The Bute Building, Westburn Lane, St Andrews, KY16 9TS, UK|
Phone: +44 1334 462479
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan M. Taylor, 2000.
"A Century of Purchasing-Power Parity,"
NBER Working Papers
8012, National Bureau of Economic Research, Inc.
- Engel, Charles & Rogers, John H, 1996.
"How Wide Is the Border?,"
American Economic Review,
American Economic Association, vol. 86(5), pages 1112-25, December.
- Charles Engel & John H. Rogers, 1994. "How Wide is the Border?," NBER Working Papers 4829, National Bureau of Economic Research, Inc.
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," International Finance Discussion Papers 498, Board of Governors of the Federal Reserve System (U.S.).
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," Research Working Paper 95-09, Federal Reserve Bank of Kansas City.
- Engel, C. & Rogers, J.H., 1995. "How Wide is the Border?," Papers 4-95-16, Pennsylvania State - Department of Economics.
- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
- Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
- Ong, Li Lian, 1997. "Burgernomics: the economics of the Big Mac standard," Journal of International Money and Finance, Elsevier, vol. 16(6), pages 865-878, December.
- Torsten Persson, 2001. "Currency unions and trade: how large is the treatment effect?," Economic Policy, CEPR;CES;MSH, vol. 16(33), pages 433-462, October.
- Michael R. Pakko & Patricia S. Pollard, 1996. "For here or to go? Purchasing power parity and the Big Mac," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 3-22.
- Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 7-46, 04.
- Matthias Lutz, 2002. "Beyond Burgernomics and MacParity: Exchange Rate Forecasts Based on the Law of One Price," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D4-1, International Conferences on Panel Data.
- Matthias Lutz, 2004. "Pricing in Segmented Markets, Arbitrage Barriers, and the Law of One Price: Evidence from the European Car Market," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 456-475, 08.
- Friberg, Richard, 2000.
"Two monies, two markets? Variability and the option to segment,"
SSE/EFI Working Paper Series in Economics and Finance
349, Stockholm School of Economics.
- Friberg, Richard, 2001. "Two monies, two markets?: Variability and the option to segment," Journal of International Economics, Elsevier, vol. 55(2), pages 317-327, December.
- Ernst Fehr & Jean-Robert Tyran, 2000.
"Does Money Illusion Matter?,"
IEW - Working Papers
045, Institute for Empirical Research in Economics - University of Zurich.
- Frondel, Manuel & Schmidt, Christoph M., 2001.
"Evaluating environmental programs: the perspective of modern evaluation research,"
ZEW Discussion Papers
01-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Frondel, Manuel & Schmidt, Christoph M., 2005. "Evaluating environmental programs: The perspective of modern evaluation research," Ecological Economics, Elsevier, vol. 55(4), pages 515-526, December.
- Frondel, Manuel & Schmidt, Christoph M., 2001. "Evaluating Environmental Programs: The Perspective of Modern Evaluation Research," IZA Discussion Papers 397, Institute for the Study of Labor (IZA).
- Slaughter, Matthew J., 2001. "Trade liberalization and per capita income convergence: a difference-in-differences analysis," Journal of International Economics, Elsevier, vol. 55(1), pages 203-228, October.
- Matthias Lutz, 2000. "EU Commission versus Volkswagen: New Evidence on Price Differentiation in the European Car Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 17(3), pages 313-323, November.
- Jacques Melitz, 2003.
"Geography, Trade and Currency Union,"
2003-25, Centre de Recherche en Economie et Statistique.
When requesting a correction, please mention this item's handle: RePEc:ecj:ac2003:143. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.