• Fiscal policy and price convergence in the European Union

FISCAL POLICY AND PRICE CONVERGENCE IN THE EUROPEAN UNION - 


Aneta Dzik-Walczak (2018), Fiscal policy and price convergence in the European Union, Czasopismo Ekonomia i Zarządzanie, Nr 5, Naukowe Wydawnictwo IVG.


Abstract


The following paper undertakes the subject of price convergence in the Member States of the European Union in the years 1995-2011. According to economic theory, an intensive activities aimed at integrating the Community, reflected in the elimination of trade barriers, increase in market transparency, increased competition, promote the equalization of prices and striving towards the fulfillment of the law of one price. The analysis was based on data from the Eurostat, Comtrade, CEPII databases. Econometric methods for panel data, including the Hausman-Taylor estimator, were used. Basing on the estimation of an extended gravity model, determinants of price convergence were indicated. A particular added value of the analysis is taking into account the fiscal policy in the Member States.


Spis treści / Table of contents

Fiscal policy and price convergence in the European Union

Abstract

1. Introduction

2. Literature review

2.1. Theoretical framework for the analysis of price convergence

2.2. Determinants of price convergence - an empirical analysis

2.3. Hypotheses

3. Description of databases

4. Modeling price convergence

4.1. Empirical model

4.2. Results

5. Summary of the findings and conclusions

Bibliography

Info about Author


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