Convergence in car prices among European countries
- Sosvilla Rivero, Simón
- Gil Pareja, Salvador
ISSN: 1988-8767
Year of publication: 2010
Issue: 517
Type: Working paper
More publications in: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]
Abstract
This paper contributes to the literature on convergence of prices in Europe by investigating the existence of stochastic and deterministic convergence of car prices in the EU15 countries over the period 1993�2008. For that purpose, we conduct unit root testing by employing the recently developed panel stationarity test of Carrion-i-Silvestre et al. (2005) which assumes a highly flexible trend function by incorporating an unknown number of structural breaks which are searched endogenously without using a priori information.