|
| |
N° 2000 - 14 |
  |
| November |
|
The Convergence of Automobile
Prices in the European Union:
an Empirical Analysis for the Period
1993-1999 |
|
Guillaume Gaulier
Séverine Haller |
|
| Over the last decade, the EC automobile market
has been the scene of significant price differentials for the same vehicle across
the member states. The move towards a more integrated internal market, since January
1993, obviously calls for more up-to-date empirical information. We provide an
analysis of price convergence over the period 1993-1999 for EU countries. Car
characteristics were collected to build aggregate prices for countries thanks
to a quasi-hedonic econometric model. Price dynamic is analyzed through Sigma
and Beta convergence. We found that Sigma convergence is impeded by exchange rates
fluctuations, while there is a strong force driving Beta convergence. The Euro
should then favor convergence. |
Abstract |
| |
|
| Automobile, european integration, panel data,
price convergence |
Keywords |
| C23, F02, L62 |
JEL classification |
| |
|
| To visualise the full text document, use Acrobat
Reader |
Full text (pdf) |
|
|
| |
|
|
|
|
|
