Chapter 3 Are Price Dynamics Homogenous across Emerging Europe? Empirical Evidence from Panel Data

The aim of this chapter is to explore whether price dynamics is homogenous across Emerging Europe. We employ dynamic panel estimation techniques (including the Pooled Mean Group estimator of Pesaran, Smith, and Shin) over the 2003–2013 period and use Germany, and respectively, the European Union (EU) as the references. Results highlight some heterogeneity across the Emerging Europe members in terms of price convergence speed. Findings are robust across different specifications.