Convergence in Car Prices Among European Countries

Documento De Trabajo Paper No. 517

60 Pages Posted: 3 May 2011

See all articles by Simon Sosvilla-Rivero

Simon Sosvilla-Rivero

UCM Institute for Economic Analysis

Salvador Gil-Pareja

University of Valencia - Department of Economics

Date Written: April, 29 2011

Abstract

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 panel stationarity test of Carrion-i-Silvestre et al. (2005) which assumes a highly flexible trend function by incorporating an unknown number of structural breaks which are searched endogenously without using a priori information.

Keywords: Market integration, Automobiles, European Union, Stochastic convergence, Deterministic convergence, Panel stationarity

JEL Classification: C23, F15, F30

Suggested Citation

Sosvilla-Rivero, Simon and Gil-Pareja, Salvador, Convergence in Car Prices Among European Countries (April, 29 2011). Documento De Trabajo Paper No. 517. Available at SSRN: https://ssrn.com/abstract=1825812 or http://dx.doi.org/10.2139/ssrn.1825812

Simon Sosvilla-Rivero (Contact Author)

UCM Institute for Economic Analysis ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain
+34913932626 (Phone)

HOME PAGE: http://www.ucm.es/info/ecocuan/ssr/

Salvador Gil-Pareja

University of Valencia - Department of Economics ( email )

Av. dels Tarongers s/n
46071 Valencia
Spain
+34 96 382 83 49 (Phone)

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