This paper contributes to the literature on convergence of prices in Europe by investigating the existence of stochastic and deterministic convergence of car prices in the EU15 countries over the period 1993-2008. For that purpose, we conduct unit root testing by employing the recently developed...

This paper examines price convergence in the European Union Car market over the period 1995-2005. The results indicate that there is a clear evidence of price convergence among the EU15 countries, but not before 1999. Moreover, countries of the Economic and Monetary Union started convergence...