Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203934
Authors: 
Podkaminer, Leon
Year of Publication: 
2010
Series/Report no.: 
wiiw Working Paper 69
Abstract: 
European Comparison Project data (years 1999-2008) are used for an estimation of cross-country systems (AIDS) of consumer demand functions defined over durable and non-durable tradable goods and non-tradable services. General exchange equilibrium models of inter-EU trade generate equalized relative prices of tradable goods. But domestic relative prices of services become more dispersed and can move the PPP/ER ratios away from unity. PPP/ER discrepancies may be sustained even when there are no impediments to free trade.
Subjects: 
Purchasing Power Parity
exchange rate
PPP/ER discrepancy
Law of One Price
Balassa-Samuelson Effect
trade integration
computable general equilibrium
cross-country systems of demand functions
Almost Ideal Demand System
tradable goods
non-tradable goods
JEL: 
F11
F15
D12
D58
F31
O57
Document Type: 
Working Paper

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