Price Convergence in the European Car Market

FEDEA Working Paper No. 2005-22

20 Pages Posted: 14 Nov 2005  

Salvador Gil-Pareja

University of Valencia - Department of Economics

Simon Sosvilla-Rivero

Complutense Institute for International Studies

Date Written: November 2005

Abstract

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

Gil-Pareja, Salvador and Sosvilla-Rivero, Simon, Price Convergence in the European Car Market (November 2005). FEDEA Working Paper No. 2005-22. Available at SSRN: https://ssrn.com/abstract=844144 or http://dx.doi.org/10.2139/ssrn.844144

Salvador Gil-Pareja (Contact Author)

University of Valencia - Department of Economics ( email )

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

Simon Sosvilla-Rivero

Complutense Institute for International Studies ( email )

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

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

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