European product market integration after the euro

Engel, Charles; Rogers, John H.

doi:10.1111/j.1468-0327.2004.00126.x

Cited by 179 publications

(181 citation statements)

References 23 publications

(24 reference statements)

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“…This expectation is confirmed by numerous studies, including Rogers, Hufbauer and Wada (2001), Engel and Rogers (2004), Weber and Beck (2005), Busetti, Forni, Harvey and Venditti (2007) and Rogers (2007), which agree that prices were less dispersed and inflation rates among Euro area countries have converged in the mid-1990s. In contrast, research investigating the post-1998 period, including ECB (2003) …”

Section: Inflation Convergence Within the Euro Areasupporting

confidence: 68%

Convergence of Euro Area Inflation Rates

Lopez

Papell

2011

SSRN Journal

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We study the behavior of inflation rates among the 12 initial Euro countries in order to test whether and when the group convergence initially dictated by the Maastricht treaty and now by the ECB, occurs. We also assess the impact of events such as the advent of the Euro and the 2008 financial crisis. Due to the small size of the estimation sample, we propose a new procedure that increases the power of panel unit root tests when used to study group-wise convergence. Applying this new procedure to Euro area inflation, we find strong and lasting evidence of convergence among the inflation rates soon after the implementation of the Maastricht treaty and a dramatic decrease in the persistence of the differential after the occurrence of the single currency. After the 2008 crisis, Euro area inflation rates follow the ECB's price stability benchmark, although Greece reports relatively higher inflation. JEL: C32, E31

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Section: Inflation Convergence Within the Euro Areasupporting

confidence: 68%

Convergence of Euro Area Inflation Rates

Lopez

Papell

2011

SSRN Journal

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“…Ski lift companies can charge different mark-ups depending on the local demand structure. Monopolists are able to charge high mark-ups when the price elasticity of demand is low (see Engel and Rogers, 2004;Krugman, 1987). However, the four-firm concentration ratio is quite low in Switzerland and Austria.…”

Section: Possible Sources Of International Price Differencesmentioning

confidence: 99%

International price differences in ski lift tickets

Falk

2011

Swiss J Economics Statistics

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Summary This paper provides empirical evidence on international price differences in ski lift tickets based on 214 ski areas in Austria, France, and Switzerland for the winter season 2010/2011. We find that French and Austrian one-day lift tickets (net of VAT) are an average of 17 and 7 per cent lower, respectively, than Swiss ticket prices after controlling for ski areas’ characteristics. The results of quantile regressions show that the magnitude of the international price differences is quite similar for low- and high-priced ski areas. Furthermore, price differences across countries do not increase with distance to the nearest border ski area.

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“…It has been found that short-run deviations from the purchasing power parity are strongly linked to the nominal exchange rate variability (Engel & Rogers, 2001), but the explanatory power is considerably reduced when looking at long-run deviations (Bergin & Glick, 2007;Parsley & Wei, 2001;Wolszczak-Derlacz, 2008a). Even though the fixation of exchange rates through the introduction of a common currency should evidently reduce price dispersion, empirical investigations of euro introduction lead only to mixed results (Allington, Kattuman, & Waldmann, 2005;Engel & Rogers, 2004;Wolszczak-Derlacz, 2008b).…”

Section: Price Approachmentioning

confidence: 99%

Impact of institutions on cross-border price dispersion

Schwarz

2012

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper analyzes the role of institutions in price dispersion among cities in the European region in the 1996-2009 period. An overview of the literature on the border effect reveals that the role of institutions is completely neglected. Using the Worldwide Governance Indicators as explanatory variables I find that the better the institutions, the lower the predicted dispersion. The result is robust to different specifications of the regression model and it is consistent with a hypothesis that arbitrage, as an entrepreneurial activity and the main power behind the law of one price, is influenced by institutional quality. Terms of use: Documents inKeywords: border effect, price dispersion, price convergence, law of one price, institutional quality JEL: D23, E31, F41, L26 Acknowledgements I would like to thank Štěpán Jurajda, Michal Bauer, and seminar participants at Charles University for their helpful comments. All remaining errors are mine.1

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European product market integration after the euro

Cited by 179 publications

References 23 publications

Convergence of Euro Area Inflation Rates

Convergence of Euro Area Inflation Rates

International price differences in ski lift tickets

Impact of institutions on cross-border price dispersion

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