Technical Analysis of Tourism Price Process in the Eurozone

Sergej Gričar and Štefan Bojnec
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Sergej Gričar: Faculty of Business and Management Sciences, University of Novo Mesto, Na Loko 2, SI-8000 Novo Mesto, Slovenia
Štefan Bojnec: Faculty of Management, University of Primorska, Izolska vrata 2, SI-6101 Koper, Slovenia

JRFM, 2021, vol. 14, issue 11, 1-25

Abstract: This study is a specific contribution to investigating normalities in prices to a well-established cointegrated vector autoregressive model (VAR). While the role of prices in computational economics has been investigated, the real prices vis-à-vis nominal prices in the decision process has been neglected. The paper investigates the transition from nominal to real time-series of prices without losing information in the data set when deflating or de-seasonalizing. The likelihood approach is based on careful specifications of the (co)integration characteristics of tourism prices. The results confirm that the transmission of tourism prices in the Eurozone positively impacts Slovenian tourism prices when the spatial consolidated cointegrated VAR model is used. The theoretical-conceptual and empirical contribution is twofold: first, the study develops and empirically applies bona fide divisor of normality consolidation for time-series in levels instead of routinely utilised inflation integers, and second, the study introduces perfection of prices on a long-run time-series treatment.

Keywords: Eurozone; managerial planning; nominal prices; real prices; spatial consolidated CVAR model; the tourism sector; seasonal decision-making (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
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