This paper presents a general framework to address several issues that have arisen in recent work that investigates purchasing power parity (PPP) and other inter-regional relative price movements: (1) How can we model real exchange rate movements in a consistent manner, so that our model for the...

type="main" xml:lang="en" <title type="main">SUMMARY</title> </section> <title type="main">Euro's price dispersion</title> <p> Using a detailed data set of prices of consumer goods in European cities from 1990 to Spring 2003, we investigate the question of whether the introduction of the euro in January 1999 increased integration of consumer markets as...</p>