The influence of inflation on differential price changes across European markets

Christos Ioannidis, Mick Silver

Research output: Contribution to journalArticlepeer-review

Abstract

This paper provides the results of an empirical study of the dispersion of consumer price inflation for each of 19 product groups across 11 European countries using monthly data covering the 1980s. The study relates the degree of inflation dispersion in a market to the mean inflation rate. Thus, we show how differential price changes across European markets are influenced by inflation. A model of asymmetric response of relative inflation variability to inflation is tested. Hypotheses are also tested regarding broad categories of traded, nontraded, and regulated products, and results are provided for individual product groups.
Original languageEnglish
Pages (from-to)31-47
Number of pages17
JournalAtlantic Economic Journal
Volume29
Issue number1
DOIs
Publication statusPublished - Mar 2001

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