PRICE CONVERGENCE ON THE EUROPEAN UNION MARKET, BASED ON ECONOMIC THEORY OF THE LAW OF ONE PRICE
PRICE CONVERGENCE ON THE EUROPEAN UNION MARKET, BASED ON ECONOMIC THEORY OF THE LAW OF ONE PRICE
Author(s): Aneta Dzik-Walczak
Subject(s): Economic history, Transformation Period (1990 - 2010), EU-Accession / EU-DEvelopment, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: price convergence; law of one price; European Union; integration;
Summary/Abstract: In this work, the price convergence on the European Union market was studied based on a panel data for the years 1995-2008. The aim of this paper was to investigate the hypothesis that integration has positive effects on convergence to the law of one price. The decreasing in time price dispersion and negative relation between the rate of growth of prices and the initial level were found. The analysis have shown rather slow speed of price convergence with halflife from 11 to 17 years for different groups of countries.
Book: New Economic Challenges: 2nd International PhD Students Conference. 20. 1. – 21. 1. 2010
- Page Range: 231-237
- Page Count: 7
- Publication Year: 2010
- Language: English
- Content File-PDF