Product Markets and 1992: Full Integration, Large Gains?

Flam, Harry

doi:10.1257/jep.6.4.7

Cited by 39 publications

(19 citation statements)

References 30 publications

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“…For example, Flam (1992) emphasizes very high value-added taxes on automobiles in the case of Denmark and Greece, and import restrictions imposed on Japanese models by Portugal and the United Kingdom. 15 Most likely, the European automobile industry has large country e¤ects because it is allowed exemptions from EU competition policy that are not enjoyed by other industries represented in our table.…”

Section: Price Dispersion and Market Structurementioning

confidence: 98%

Understanding European Real Exchange Rates

Crucini

Telmer

Zachariadis

2005

American Economic Review

243

189

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We study good-by-good deviations from the Law-of-One-Price for over 5,000 goods and services between European Union countries for the years 1975, 1980, 1985 and 1990. We …nd that between most countries there are roughly as many overpriced goods as there are underpriced goods. Equally-weighted and CPI-weighted averages of good-by-good relative prices generate relatively accurate predictions of most nominal cross-rates, as purchasing power parity (PPP) would suggest. These …ndings are robust across years, in spite of relatively large movements in nominal exchange rates. Variation around the averages is large but is found to be related to economically meaningful characteristics of goods such as international tradeability, non-tradedness of factors of production and the competitive structure of the markets in which the goods are sold. Using data on product brands, we …nd that product heterogeneity is at least as important as geography in explaining relative price dispersion. Overall, our data provide strong evidence that international goods markets are segmented, but (i) the evidence relies on absolute deviations from the Law-of-One-Price, not deviations from PPP, (ii) some markets are much more segmented than others, with the distinctions being consistent with economic theory.

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Section: Price Dispersion and Market Structurementioning

confidence: 98%

Understanding European Real Exchange Rates

Crucini

Telmer

Zachariadis

2005

American Economic Review

243

189

View full text Add to dashboard Cite

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“…Third, to what extent can the analysis be recast in a monetary framework? 6 Here we study the allocation of commodities through a two-stage hierarchy of competitive markets. Hierarchical allocation schemes with non-market institutions at all levels have also been examined, e.g.…”

Section: Resultsmentioning

confidence: 99%

“…Flam (1992), Verboven (1996)]. In some of these cases, international price discrimination cannot be linked to the existing tariff and non-tariff barriers [see Verboven (1996)].…”

Section: Relation To the Literaturementioning

confidence: 99%

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Hierarchical Trade and Endogenous Price Distortions

Gersbach

Haller

2007

SSRN Journal

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We study the allocation of commodities through a two-stage hierarchy of competitive markets. Groups or countries trade at global prices while individuals within a group trade at local prices. We identify the free trade and the autarky equilibrium as polar cases. We show that no other two-stage market equilibria exist if the commodity space is two-dimensional. An example demonstrates that other, so-called intermediate equilibria exist for three-dimensional commodity spaces. The example also exhibits endogenous price distortions in third countries when some countries follow distortionary trade policies. We give two existence proofs for intermediate equilibria in higher dimensions. Each proof provides an explicit construction of special classes of intermediate equilibria.

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“…Although a change of institutional arrangements is at the core of economic integration, physical transactions, or the flows of goods and capital, have generally been the focus of integration studies (e.g. Flam, 1992;Pelkmans, 2001;Smallbone et al, 1996). This approach has its limitations since it disregards, or only implicitly considers, the international flow of organizational ideas and practices.…”

Section: Introductionmentioning

confidence: 99%

Internationalization of the organizational field: Swedish grocery retailers in the European integration process

Bonnedahl

Jensen

2007

The International Review of Retail, Distribution and Consumer R

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This article describes how import of ideas and practices influence an industry that is in an early stage of internationalization, as well as part of European integration. By using institutional theory, such a situation is depicted as an expansion of the organizational field, in which international isomorphism between organizations has commenced. Studying Swedish grocery retailing, a new set of ideas was found regarding what constitutes an efficient organization. This included centralization, vertical integration and brand management, and it was strongly influenced by foreign actors and markets. We conclude that isomorphism occurs in a decreasingly national field, although not entirely pan-European in character, and that international diffusion of ideas and practices reshape markets, partly independent of goods and capital flows.

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Product Markets and 1992: Full Integration, Large Gains?

Cited by 39 publications

References 30 publications

Understanding European Real Exchange Rates

Understanding European Real Exchange Rates

Hierarchical Trade and Endogenous Price Distortions

Internationalization of the organizational field: Swedish grocery retailers in the European integration process

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