One Tv, One Price?

Jean M. Imbs, Haroon Mumtaz, Morten O. Ravn, Hélène Rey

Research output: Contribution to journalArticle

Abstract

We study television prices across European countries and regions. Quality as measured by observable characteristics of televisions accounts for a large share of the international dispersion in prices. Rich economies tend to consume higher-quality goods, but sizeable international price differentials exist even for identical televisions. The valuation of brands differs significantly across borders. EMU countries display lower price dispersion but not necessarily because of the single currency. Absolute price differentials and relative price volatility increase with exchange rate volatility, but not with transport costs. Exchange rate pass-through is low in the short run but high in the long run.

Original languageEnglish (US)
Pages (from-to)753-781
Number of pages29
JournalScandinavian Journal of Economics
Volume112
Issue number4
DOIs
StatePublished - Dec 2010

Keywords

  • Border effect
  • Brand perception
  • International and regional price differences

ASJC Scopus subject areas

  • Economics and Econometrics

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