One TV, One Price?

29 Pages Posted: 16 Nov 2010

See all articles by Jean M. Imbs

Jean M. Imbs

Paris School of Economics (PSE); Centre for Economic Policy Research (CEPR); Swiss Finance Institute

Haroon Mumtaz

University of London - School of Sciences

Morten O. Ravn

European University Institute - Economics Department (ECO); London Business School - Department of Economics; University of Southampton; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Hélène Rey

London Business School; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

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Abstract

We study television prices across European countries and regions. Quality as measured by observable characteristics of televisions accounts for a large share of the international dispersion in prices. Rich economies tend to consume higher-quality goods, but sizeable international price differentials exist even for identical televisions. The valuation of brands differs significantly across borders. EMU countries display lower price dispersion but not necessarily because of the single currency. Absolute price differentials and relative price volatility increase with exchange rate volatility, but not with transport costs. Exchange rate pass-through is low in the short run but high in the long run.

Suggested Citation

Imbs, Jean M. and Mumtaz, Haroon and Ravn, Morten O. and Rey, Helene, One TV, One Price?. Scandinavian Journal of Economics, Vol. 112, No. 4, pp. 753-781, December 2010. Available at SSRN: https://ssrn.com/abstract=1709731 or http://dx.doi.org/10.1111/j.1467-9442.2010.01631.x

Jean M. Imbs (Contact Author)

Paris School of Economics (PSE) ( email )

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France

Centre for Economic Policy Research (CEPR)

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Swiss Finance Institute ( email )

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Haroon Mumtaz

University of London - School of Sciences ( email )

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United Kingdom

Morten O. Ravn

European University Institute - Economics Department (ECO) ( email )

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London Business School - Department of Economics ( email )

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University of Southampton ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Helene Rey

London Business School ( email )

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Regent's Park
London, London NW1 4SA
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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