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Please use this identifier to cite or link to this item:
http://hdl.handle.net/1814/8747
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| Title: | Does One Currency Mean One Price? |
| Authors: | WOLSZCZAK-DERLACZ, Joanna |
| Keywords: | price convergence
EMU
changeover effects
E31
F36
F41 |
| Issue Date: | 2008 |
| Publisher: | European University Institute |
| Series/Report no.: | EUI MWP
2008/21 |
| Abstract: | European Monetary Union was expected to have many consequences for the economies
of participant countries. Theory suggested that through a higher volume of trade and
stronger competition in the Eurozone, a single currency would lead to a reduction in
price dispersion. As far as prices are concerned, two effects were expected: an
immediate effect due to the technical characteristics of the changeover process, and a
long-term one leading to price convergence. Both Euro effects are evaluated using
difference-in-difference (DD) methodology. DD estimation is commonly used in the
evaluation of the effects of policy programmes. Applied to the issue of introducing a
single currency, the Euro effects identified are the estimated differences in price
changes, price dispersion and convergence rates pre- and post-Euro between two groups
of countries: Euro and non-Euro. |
| URI: | http://hdl.handle.net/1814/8747 |
| ISSN: | 1830-7728 |
| Appears in Collections: | MWP Working Papers
ECO Working Papers
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