Publication: Convergence in car prices among European countries
Loading...
Official URL
Full text at PDC
Publication Date
2012
Advisors (or tutors)
Editors
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor & Francis
Citations
Exportar
Abstract
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).