Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153563
Authors: 
Andersson, Malin
Masuch, Klaus
Schiffbauer, Marc
Year of Publication: 
2009
Series/Report no.: 
ECB Working Paper 1129
Abstract: 
This paper analyses the determinants of inflation differentials and price levels across the euro area countries. Dynamic panel estimations for the period 1999-2006 show that inflation differentials are primarily determined by cyclical positions and inflation persistence. The persistence in inflation differentials appears to be partly explained by administered prices and to some extent by product market regulations. In a cointegrating framework we find that the price level of each euro area country is governed by the levels of GDP per capita.
Subjects: 
convergence
inflation differentials
Inflation persistence
price level
JEL: 
E32
E52
E43
F2
Document Type: 
Working Paper

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