Pricing to market behaviour in European car markets

Gil‐Pareja, Salvador

doi:10.1016/s0014-2921(02)00234-9

Cited by 43 publications

(27 citation statements)

References 15 publications

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“…The differences in markup adjustments induced by exchange rate variations reveal that international price discrimination has been an important source of price dispersion across the euro area. This phenomenon has been well documented for a previous period of study despite the fact that the Single Market Programme came into force at the end of 1992 (i.e., Gil-Pareja, 2003). We also performed a comparative analysis between these results and those obtained from a second sub-sample period in which the BER (1400=2002) was fully implemented.…”

Section: Discussionsupporting

confidence: 54%

Testing the Market Integration Process in the European Car Sector: Evidence from Pricing‐to‐market Behaviour

Balaguer

2012

World Economy

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Registro de acceso restringido Este recurso no está disponible en acceso abierto por política de la editorial. No obstante, se puede acceder al texto completo desde la Universitat Jaume I o si el usuario cuenta con suscripción. Registre d'accés restringit Aquest recurs no està disponible en accés obert per política de l'editorial. No obstant això, es pot accedir al text complet des de la Universitat Jaume I o si l'usuari compta amb subscripció. Restricted access item This item isn't open access because of publisher's policy. The full--text version is only available from Jaume I University or if the user has a running suscription to the publisher's contents.

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Section: Discussionsupporting

confidence: 54%

Testing the Market Integration Process in the European Car Sector: Evidence from Pricing‐to‐market Behaviour

Balaguer

2012

World Economy

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“…Examples include, apart from Krugman (1986), Marston (1989), Blinder et al (1998), FitzGerald and Shortall (1998), Gil-Pareja (2003, Warmedinger (2004), Fitzgerald and Haller (2014), and Asprilla et al (2015). A typical example of the empirical findings is Gil-Pareja (2002), whose study of pricing-tomarket in European car markets during 1993 and 1998 found that, for imported cars, price stability in terms of the local currency is a strong and pervasive phenomenon.…”

Section: Pricing-to-marketmentioning

confidence: 99%

Exchange rate implications of Border Tax Adjustment Neutrality

Buiter

2017

Economics

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This paper investigates the implications for the nominal exchange rate of a Border Tax Adjustment (BTA) when there is BTA neutrality. A border tax adjustment is a change from an origin-based system of taxation, that taxes exports but exempts imports to a destination-based system that taxes imports but exempts exports. Both indirect taxes (e.g. a VAT) and direct taxes (e.g. a cash-flow corporate profit tax) can be subject to a BTA. In the US, a BTA for the corporate profit tax is under discussion. There is BTA neutrality when the real equilibrium, including measures of profitability and competitiveness, of an open economy is unchanged when it moves from an origin-based to a destinationbased tax. The conventional wisdom on the exchange rate implications of a neutral BTA is that the currency of the country implementing the BTA will strengthen (appreciate) by a percentage equal to the VAT or CPT tax rate. The main insight of this note is that this 'appreciation presumption' is not robust, even when all conditions for full BTA neutrality are satisfied. Indeed, plausible alternative assumptions about constancy (or stickiness) of nominal prices support a weakening (depreciation) of the currency by the same percentage as the tax rate. On the basis on the very patchy available empirical information, it is not possible to take a view with any degree of confidence on the implications of a BTA for the nominal exchange rate, even if full BTA neutrality prevailed. Whether BTA neutrality itself is a feature of the real world is also a disputed empirical issue. Therefore, buyer (or seller) beware. JEL E31 E62 F11 F13 F41 H25 H87

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“…One of the most heavily studied markets is the automobile market, especially in Europe. Verboven (1996), Gil-Pareja (2003), Lutz (2004) and Goldberg and Verboven (2005) all report evidence of pricing-to-market behavior in the automobile market. Another major market with important public policy implications is pharmaceuticals.…”

Section: Introductionmentioning

confidence: 99%

A textbook example of international price discrimination

et al. 2007

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We investigate differences in book prices between the United States and other countries. We find that general audience books are similarly priced internationally, but textbooks are substantially more expensive in the United States (often more than double the price). This disparity is much more pronounced for commercial publishers than for university presses. We argue that supply-side factors like cost and market structure can not explain this phenomenon. We discuss several demand-side explanations; our preferred theory is that higher US textbook prices reflect the unique status of the textbook as a centerpiece of US college instruction.

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Pricing to market behaviour in European car markets

Cited by 43 publications

References 15 publications

Testing the Market Integration Process in the European Car Sector: Evidence from Pricing‐to‐market Behaviour

Testing the Market Integration Process in the European Car Sector: Evidence from Pricing‐to‐market Behaviour

Exchange rate implications of Border Tax Adjustment Neutrality

A textbook example of international price discrimination

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