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...