Mignon, Valérie; Guerreiro, David - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2011
We investigate price level convergence with Germany in eleven countries belonging to the Eurozone between January 1970 … and July 2011. Relying on smooth transition regression models, we show that the price convergence process is nonlinear …, depending on the size of the price differential: for most countries, price convergence occurs only when price differentials with …