In search of a euro effect: Big lessons from a Big Mac Meal?

David Parsley and Shang-Jin Wei

Journal of International Money and Finance, 2008, vol. 27, issue 2, 260-276

Abstract: Was the adoption of the euro accompanied by an increase in prices? Did it promote goods market arbitrage in the form of faster convergence to a common price? By comparing the experience of eurozone countries to non-euro European countries in a 'difference-in-differences' specification, we net out effects on prices unrelated to the euro. We find neither evidence of significant price increases associated with the euro, nor evidence of a significant improvement in market integration.

Date: 2008
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Working Paper: In Search of a Euro Effect: Big Lessons from a Big Mac Meal? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:27:y:2008:i:2:p:260-276

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