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Author(s) -
Imbs Jean M.,
Mumtaz Haroon,
Ravn Morten O.,
Rey Hélène
Publication year - 2010
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2010.01631.x
Subject(s) - economics , price dispersion , volatility (finance) , monetary economics , valuation (finance) , currency , single currency , exchange rate , relative price , price level , international economics , econometrics , finance
We study television prices across European countries and regions. Quality as measured by observable characteristics of televisions accounts for a large share of the international dispersion in prices. Rich economies tend to consume higher‐quality goods, but sizeable international price differentials exist even for identical televisions. The valuation of brands differs significantly across borders. EMU countries display lower price dispersion but not necessarily because of the single currency. Absolute price differentials and relative price volatility increase with exchange rate volatility, but not with transport costs. Exchange rate pass‐through is low in the short run but high in the long run.