"In Search of a Euro Effect: Big Lessons from a Big Mac Meal?"

David Parsley, Shang-Jin Wei

© Journal of International Money and Finance, March 2008
Volume: 27 | Issue: 2 | Pages: 260-276

Publication type: Journal article

Research Archive Topic: Business Economics and Public Policy, World Business

Abstract

Was the adoption of the euro accompanied by an increase in prices? Did it promote goods market arbitrage in the form of faster convergence to a common price? By comparing the experience of eurozone countries to non-euro European countries in a "difference-in-differences" specification, we net out effects on prices unrelated to the euro. We find neither evidence of significant price increases associated with the euro, nor evidence of a significant improvement in market integration.

Available here is a preprint version of this article. The final version may be found at http://dx.doi.org/10.1016/j.jimonfin.2007.12.008.

Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.

Each topic is linked to an index of publications on that topic.

Contract

Add a new
Add a new