Author: Olena Ogrokhina
Publisher:
ISBN:
Category : Economics
Languages : en
Pages :
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Book Description
This dissertation consists of three essays on the persistence and convergence of prices in the European Union. In the first essay I study price differentials in the Eurozone by comparing prices for specific goods between European cities, and estimate their persistence. The second essay tests the effect of the single market and single currency (euro) on price convergence in the European Union. The third essay tests the effect of trade on price convergence. In my first essay, using the Economist Intelligence Unit data I find that the Southern countries of the Eurozone have consistently lower prices. While the Core states such as Germany and France are more expensive, price differentials within the Core are very low. Using panel data I estimate the persistence of deviations from the Law of One Price by employing linear and nonlinear panel unit root tests that account for contemporaneous as well as serial correlation. Based on the linear test, the estimated half-lives of the deviations from the Law of One Price are 13 months for traded goods and 15 months for non-traded goods. Price differentials for certain traded goods revert to parity at different speeds, for example prices for food adjusts much faster than for cars. Splitting the data series for individual goods into stationary and non-stationary components reduces the half-lives to 3 months for traded goods and 5 months for non-traded goods. The results of the nonlinear test suggest that the speed of reversion to parity is constant and independent of the size of the deviations, which implies prices based on good-specific data adjust in a linear rather than a nonlinear fashion. The implementation of international treaties in the European Union was expected to promote integration of consumer markets. In my second essay, I analyze the convergence of prices for a range of traded goods. Large price differentials remain across Europe. Using high income non-euro European countries as a control group, I test the effect of the euro and the earlier implemented Single European Act on the convergence of prices in the European Union. Using a difference-in-difference estimation strategy, I find that the Single European Act, rather than the common currency, reduced price differentials and promoted price convergence. Wide price differences still exist across the members of the European Union. While differentials among the ``old'' EU members have changed little over time, large price differentials between the Eastern and Central EU and the Eurozone have reduced significantly, with prices completely converging to the levels of the Southern EU. In my third essay I test the effect of trade on price differentials. The fixed effects estimate shows strong correlation between price differentials and bilateral trade, a 1\% increase in bilateral trade reduces price differences by 9\%. This finding is completely driven by the Eastern and Central EU. Since the relationship between the price differentials and trade can go in either direction, an instrument is required to estimate a causal relationship. Instrumental-variables strategy shows that the effect of trade on price differentials for the Eastern and Central EU is even larger, at 13\%, yet insignificant for the remaining EU members.
Author: Florence Bouvet
Publisher:
ISBN:
Category :
Languages : en
Pages : 270
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Book Description
Author: Lorenzo Bini Smaghi
Publisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 86
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Book Description
Author: Stefano Micossi
Publisher:
ISBN: 9789290799290
Category : Political Science
Languages : en
Pages : 0
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Book Description
The contributors to this book are all members of EuropEos, a multidisciplinary group of jurists, economists, political scientists, and journalists in an ongoing forum discussing European institutional issues. The essays analyze emerging shifts in common policies, institutional settings, and legitimization, sketching out possible scenarios for the European Union of the 21st century. They are grouped into three sections, devoted to economics and consensus, international projection of the Union, and the institutional framework. Even after the major organizational reforms introduced to the EU by the new Treaty of Lisbon, which came into force in December 2009, Europe appears to remain an entity in flux, in search of its ultimate destiny. In line with the very essence of EuropEos, the views collected in this volume are sometimes at odds in their specific conclusions, but they stem from a common commitment to the European construction.
Author: Natalia Golotvina
Publisher:
ISBN:
Category :
Languages : en
Pages : 256
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Book Description
Author: Michael Landesmann
Publisher: Palgrave Macmillan
ISBN: 9783030576851
Category : Political Science
Languages : en
Pages : 328
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Book Description
This edited volume analyses how EU membership influenced the convergence process of member countries in the Baltics, Central-Eastern and South-Eastern Europe. It also explores countries that are candidates for future EU membership. The speed of convergence of significant groups of low- and medium-income countries has never been as fast globally as it is today. Contributions by lead researchers of the area explore whether these countries are converging faster than their fundamentals and global trends would suggest because of EU membership, with its much tighter institutional and political anchorage
Author: Paul A. David
Publisher: Oxford University Press
ISBN: 9780197263471
Category : Business & Economics
Languages : en
Pages : 548
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Book Description
In this volume, leading modern economic historians show how analysis of past experiences contributes to a better understanding of present-day economic conditions; they offer important insights into major challenges that will occupy the attention of policy makers in the coming decades. The seventeen essays are organised around three major themes, the first of which is the changing constellation of forces sustaining long-run economic growth in market economies. The second major theme concerns the contemporary challenges posed by transitions in economic and political regimes, and by ideologies that represent legacies from past economic conditions that still affect policy responses to new 'crises'. The third theme is modern economic growth's diverse implications for human economic welfare - in terms of economic security, nutritional and health status, and old age support - and the institutional mechanisms communities have developed to cope with the risks that individuals are exposed to by the concomitants of rising prosperity.
Author: Michael Emerson
Publisher:
ISBN: 9780198773245
Category : Business & Economics
Languages : en
Pages : 356
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Book Description
The European Community is negotiating a new treaty to establish the constitutional foundations of an economic and monetary union in the course of the 1990s. This study provides the only comprehensive guide to the economic implications of economic and monetary union. The work of an economist inside the Commission of the European Community, it reflects the considerations influencing the design of the union. The study creates a unique bridge between the insights of modern economic analysis and the work of the policy makers preparing for economic and monetary union.
Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 592
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Book Description
Author: J. McCombie
Publisher: Springer
ISBN: 023050423X
Category : Business & Economics
Languages : en
Pages : 293
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Book Description
This collection of essays on Verdoorn's Law - the relationship between the growth of industrial productivity and output - presents a number of comprehensive surveys and assessments of the vast literature available. The collection not only includes an English translation of Verdoorn's seminal article originally published in Italian, but also new empirical evidence for the Verdoorn Law and new developments in the theoretical modelling of cumulative causation.
