The Inflationary Consequences of a Currency Changeover on the Catering Sector: Evidence from the Michelin Red Guide

Fabrizio Adriani, Giancarlo Marini and Pasquale Scaramozzino

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: This paper examines the inflationary consequences of a currency changeover in the catering market. Empirical evidence from the Michelin Red Guide shows that: i) differently from restaurants in non-euro countries, restaurants in the euro area experienced abnormal price increases just after the changeover, ii) among restaurants in the euro area, tourist restaurants are responsible for most of the abnormal price increases. These results suggest that proposed explanations for the changeover effect such as menu adjustment and rounding up are only part of the story. We present a simple model of the catering market that is consistent with the evidence.

Keywords: Restaurants; Tourists; Euro; Currency Changeover. (search for similar items in EconPapers)
JEL-codes: D43 D82 E31 F33 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2008-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.bristol.ac.uk/efm/media/workingpapers/w ... pdffiles/dp08604.pdf (application/pdf)

Related works:
Journal Article: The Inflationary Consequences of a Currency Changeover on the Catering Sector: Evidence from the Michelin Red Guide* (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:08/604

Access Statistics for this paper

More papers in Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK
Bibliographic data for series maintained by Vicky Jackson ().