TY  - UNPD
A1  - Beck, Günter W.
A1  - Weber, Axel A.
T1  - How wide are European borders? New evidence on the integration effects of monetary unions
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2001,07
N2  - We use consumer price data for 81 European cities (in Germany, Austria, Switzerland, Italy, Spain and Portugal) to study deviations from the law-of-one-price before and during the European Economic and Monetary Union (EMU) by analysing both aggregate and disaggregate CPI data for 7 categories of goods we find that the distance between cities explains a significant amount of the variation in the prices of similar goods in different locations. We also find that the variation of the relative price is much higher for two cities located in different countries than for two equidistant cities in the same country. Under EMU, the elimination of nominal exchange rate volatility has largely reduced these border effects, but distance and border still matter for intra-European relative price volatility. JEL classification: F40, F41
T3  - CFS working paper series - 2001, 07 
KW  - relative price volatility
KW  - spatial data
KW  - real exchange rate
KW  - law of one price
KW  - purchasing power parity
KW  - stationarity
KW  - panel unit root test
KW  - Deutschland
KW  - Österreich
KW  - Schweiz
KW  - Italien
KW  - Spanien
KW  - Portugal
KW  - Verbraucherpreis
KW  - Europäische Union
KW  - Währungsunion
Y1  - 2001
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4391
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10972
N1  - Version: Januar 2001. Revised April 2003
IS  - Revised Version: April 2003
ER  -