Scientific article: Fiscal policy and price convergence in the European Union
Author: Dr. Aneta Dzik-Walczak Department of Statistics and Econometrics, Faculty of Economic Sciences, University of Warsaw
Journal of Economy and Management
ISSN 2083-963X No 5/2018
The following paper undertakes the subject of price convergence in the Member States of the European Union in the years 1995-2011. According to economic theory, an intensive activities aimed at integrating the Community, reflected in the elimination of trade barriers, increase in market transparency, increased competition, promote the equalization of prices and striving towards the fulfillment of the law of one price. The analysis was based on data from the Eurostat, Comtrade, CEPII databases. Econometric methods for panel data, in-cluding the Hausman-Taylor estimator, were used. Basing on the estimation of an extended gravity model, determinants of price convergence were indicated. A particular added value of the analysis is taking into account the fiscal policy in the Member States.
JEL classifications: E31, F02, F36, F41
Keywords: price convergence; fiscal policy; integration; European Union; panel data
Fiscal policy and price convergence in the European Union