Price Convergence in the European Car Market
FEDEA Working Paper No. 2005-22
20 Pages Posted: 14 Nov 2005
Date Written: November 2005
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 previously to the EU15 as a whole. Finally, exchange rate changes has significantly contributed to price dispersion over time across countries.
Keywords: Market integration, Automobiles, European Union, Euro, Exchange rates
JEL Classification: F15, F30
Suggested Citation: Suggested Citation