One currency, One Price? Euro Changeover-Related Inflation in Estonia

32 Pages Posted: 20 Sep 2014

See all articles by Jaanika Meriküll

Jaanika Meriküll

Bank of Estonia; University of Tartu

Tairi Room

Bank of Estonia

Multiple version iconThere are 2 versions of this paper

Date Written: September 4, 2014

Abstract

This paper studies euro changeover-related inflation using disaggregated price level data. The difference-in-differences approach is used and the control group for the treatment country, Estonia, is built from 12 euro area countries. The Nielsen Company disaggregated price data are employed at product, brand and shop-type level. The results indicate that while the overall inflationary effect of euro adoption was modest, the effects were significantly different across various market segments. Changeover-related inflation was higher for products that were relatively cheaper than the euro area average. Inflationary effects were stronger in smaller shops.

Keywords: euro, currency changeovers, market concentration, consumer behaviour

JEL Classification: D49, P46, E58

Suggested Citation

Meriküll, Jaanika and Room, Tairi, One currency, One Price? Euro Changeover-Related Inflation in Estonia (September 4, 2014). ECB Working Paper No. 1732. Available at SSRN: https://ssrn.com/abstract=2491559

Jaanika Meriküll (Contact Author)

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

University of Tartu ( email )

Ülikooli 18
Tartu 50090
Estonia

Tairi Room

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
23
Abstract Views
352
PlumX Metrics