Price Convergence under EMU? First Estimates

Matthias Lutz

University of St. Gallen Department of Economics working paper series 2003 from Department of Economics, University of St. Gallen

Abstract: This paper examines whether European monetary union has lowered the degree of price dispersion among member countries. The difference-in-differences methodology is applied to four independent data sets containing prices of identical goods. While the results reported in the paper vary somewhat across goods, they provide little overall support of the European Commission's claim that the single currency would significantly deepen market integration among the euro-zone countries. Even though this should be viewed as preliminary evidence, it does suggest that there are other, more important impediments to market integration in the EU.

Keywords: EMU; price convergence; difference-in-differences (search for similar items in EconPapers)
JEL-codes: F15 F33 F36 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2003-04
New Economics Papers: this item is included in nep-eec and nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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http://ux-tauri.unisg.ch/RePEc/usg/dp2003/dp0308lutz_ganz.pdf (application/pdf)

Related works:
Chapter: Price Convergence under EMU? First Estimates (2004)
Working Paper: Price Convergence under EMU? First Estimates (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2003:2003-08

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