The Euro Changeover and Price Adjustments in Italy

Caporale, Guglielmo Maria; Girardi, Alessandro; Ventura, Marco

doi:10.2139/ssrn.1793743

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The Euro Changeover and Price Adjustments in Italy

CESifo Working Paper Series No. 3386

11 Pages Posted: 29 Mar 2011

See all articles by Guglielmo Maria Caporale

Guglielmo Maria Caporale

Brunel University London - Department of Economics and Finance; London South Bank University; CESifo (Center for Economic Studies and Ifo Institute); German Institute for Economic Research (DIW Berlin)

Alessandro Girardi

National Institute of Statistics (ISTAT)

Marco Ventura

Istituto di Studi e Analisi Economica (ISAE)

There are 2 versions of this paper

Date Written: March 24, 2011

Abstract

By estimating a staggered price model over the period 1980q1-2010q2, this paper documents that, after the euro changeover, Italian retailers have increased the number of price adjustments, which has translated into a higher inflation rate, with a detrimental effect on the competitiveness of the Italian economy.

Keywords: Euro changeover, staggered price adjustments, inflation

JEL Classification: C220, E310

Suggested Citation: Suggested Citation

Caporale, Guglielmo Maria and Girardi, Alessandro and Ventura, Marco, The Euro Changeover and Price Adjustments in Italy (March 24, 2011). CESifo Working Paper Series No. 3386, Available at SSRN: https://ssrn.com/abstract=1793743 or http://dx.doi.org/10.2139/ssrn.1793743