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