This paper examines price convergence between the major cities of Mexico making use of unit root tests with panel data. If the price deviation is stationary, it is said that there is price convergence and market integration. The results achieved in this paper indicate that the price deviations...

In this paper, we examine the determinants of inflation differentials in a panel of the newEuropean Union member states vis-‡-vis the euro area in 1997-2007. Our main results are as follows. Exchange rate appreciation and higher price level in the new EU members is associated with narrower...