TY  - UNPD
A1  - Rühl, Christian
T1  - Size and welfare costs of price differences across European countries
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 535
N2  - Studies employing micro price data suggest that price dispersion is larger between regions in different countries than between regions in the same country. To investigate the strength of this border effect, deviations from the law of one price are used in most studies to provide statistical evidence on the effect of borders on price dispersion. I propose an alternative measure of the economic costs of borders which has an explicit welfare-theoretic foundation. Employing a unique micro price data set from households in Belgium, Germany and the Netherlands I provide evidence on the economic importance of price differences for households. I find that price dispersion within countries has only small economic importance, but that price dispersion between Belgium and Germany (and Belgium and the Netherlands) has considerable economic importance.
T3  - CFS working paper series - 535 
KW  - border effects
KW  - goods market integration
KW  - welfare effects
KW  - international price dispersion
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/41543
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-415434
UR  - https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2016/CFS_WP_535.pdf
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -