In search of a euro effect: Big lessons from a Big Mac Meal?
Was the adoption of the euro accompanied by an increase in prices? Did it promote goods market arbitrage in the form of faster convergence to a common price? By comparing the experience of eurozone countries to non-euro European countries in a 'difference-in-differences' specification, we net out effects on prices unrelated to the euro. We find neither evidence of significant price increases associated with the euro, nor evidence of a significant improvement in market integration.
Year of publication: |
2008
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Authors: | Parsley, David ; Wei, Shang-Jin |
Published in: |
Journal of International Money and Finance. - Elsevier, ISSN 0261-5606. - Vol. 27.2008, 2, p. 260-276
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Publisher: |
Elsevier |
Saved in:
Online Resource
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