6533b831fe1ef96bd1299845
RESEARCH PRODUCT
Convergence in car prices among European countries
Salvador Gil-parejaSimon Sosvilla-riverosubject
Market integrationEconomics and EconometricsEconomía internacional[QFIN]Quantitative Finance [q-fin]05 social sciencesSample (statistics)LegislatureConvergence (economics)International economicsRelative priceTrend functionUnit root testing8. Economic growth0502 economics and businessEconomic and monetary unionEconometricsEconomicsA priori and a posteriorimedia_common.cataloged_instanceSocial Sciences & Humanities050207 economicsEuropean unionEconometría050205 econometrics media_commondescription
This article contributes to the literature on price convergence in Europe by investigating the existence of stochastic and deterministic convergence of car prices in the EU15 countries. We apply recently developed econometric techniques that allow for multiple structural breaks to an up-to-date dataset. We find considerable evidence of both types of convergence in our sample of countries and car models, therefore suggesting a tendency for relative prices to equalize over time. In addition, we find evidence regarding the importance in this convergence process of both legislative changes taking place in the years 1996 and 2002, and the implementation of Economic and Monetary Union (EMU).
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2011-06-25 |