Is price dynamics homogeneous across Eurozone countries? - Archive ouverte HAL
Pré-Publication, Document De Travail Année : 2012

Is price dynamics homogeneous across Eurozone countries?

David Guerreiro
  • Fonction : Auteur
  • PersonId : 991177
Marc Joëts
  • Fonction : Auteur
  • PersonId : 991178
Valérie Mignon
  • Fonction : Auteur
  • PersonId : 1016632

Résumé

The aim of this paper is to investigate whether price dynamics is homogeneous across the Eurozone countries. Relying on monthly data over the January 1970-July 2011 period, we test for the absolute purchasing power parity (PPP) hypothesis through the implementation of second-generation panel unit root and cointegration tests. Our results show that price dynamics are heterogeneous depending on both the time period and the considered group of countries. More specifically, while PPP is validated for the core EMU countries, this hypothesis does not hold for Northern peripheral economies. Turning to the Southern countries, PPP is observed only before the launch of the euro.
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Dates et versions

hal-04141137 , version 1 (26-06-2023)

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  • HAL Id : hal-04141137 , version 1

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David Guerreiro, Marc Joëts, Valérie Mignon. Is price dynamics homogeneous across Eurozone countries?. 2012. ⟨hal-04141137⟩
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