Convergence in car prices among European countries



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Sosvilla-Rivero, Simón and Gil Pareja, Salvador (2012) Convergence in car prices among European countries. Applied Economics, 44 (25). pp. 3247-3254. ISSN 1466–4283

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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).

Item Type:Article
Uncontrolled Keywords:Market integration; Automobiles; European; Convergence; Panel stationarity.
Subjects:Social sciences > Economics > Econometrics
Social sciences > Economics > World economy
JEL:C23, F15, F30
ID Code:59766
Deposited On:27 Mar 2020 10:41
Last Modified:31 Mar 2020 09:33

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