This paper examines the statistical relationship between aggregate commodity terms of trade and the net barter terms of trade of 66 non-oil developing countries. Stationarity of the estimated long-run equation is tested for each country using Engle-Granger ADF tests. Four different commodity...

This paper examines whether European monetary union has lowered the degree of price dispersion among member countries. A number of different estimation methods are applied to four independent datasets containing prices of identical goods. While the results reported in the paper vary somewhat...

This paper examines the null hypothesis that output series contain a unit root against the alternative of a segmented trend in a representative sample of 31 developing countries. Nearly two-thirds of the countries reject the unit root hypothesis at least once in favour of a segmented trend...

The paper uses micro-level price data from the European car market to examine why there are deviations from the law of one price. The absolute law of one price is strongly rejected, but there is convergence to its relative version. Two sets of explanations are considered: (i) price-setting in...