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N° 2008-29 |
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| December 2008 |
| Trade Prices and the Euro |
Julien Martin
Isabelle Méjean |
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This paper describes the impact of the Euro on i) the level, ii) the evolution and iii) the
dispersion of trade prices. This empirical analysis relies on firm level data about French
exports over the period 1995-2005.
We find that the elimination of exchange rate fluctuations reduces the pricing to market behavior
of French exporters. At the beginning of the EMU, we also observe an increase in
aggregate prices for sales in the Euro zone. This price increase does not compensate for the
aggregate price gap between cheaper EMU markets and more expensive non-EMU countries.
Last we find that the Euro has affected firms’ pricing strategies leading to a reduction of the
price dispersion inside the Euro zone. |
Non-technical summary |
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Résumé
non-technique
en français |
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| Full text |
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| International trade prices; european monetary integration |
Keywords |
| F12; F15 |
JEL classification |
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