Atlantic Economic Journal

, Volume 29, Issue 1, pp 31–47 | Cite as

The influence of inflation on differential price changes across European markets

  • Christos Ioannidis
  • Mick Silver
Articles
  • 52 Downloads

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.

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Copyright information

© International Atlantic Economic Society 2001

Authors and Affiliations

  • Christos Ioannidis
    • 1
  • Mick Silver
    • 2
  1. 1.Brunel UniversityUnited Kingdom
  2. 2.Cardiff UniversityUnited Kingdom

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