Replication data for: Understanding European Real Exchange Rates
Principal Investigator(s): View help for Principal Investigator(s) Mario J. Crucini; Chris I. Telmer; Marios Zachariadis
Version: View help for Version V1
Name | File Type | Size | Last Modified |
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aer_code | 10/27/2021 09:54:AM | ||
LICENSE.txt | text/plain | 14.6 KB | 12/06/2019 10:30:AM |
ctz_aer_data_appendix1.pdf | application/pdf | 117.8 KB | 12/06/2019 10:30:AM |
replicate_aer_ctz.pdf | application/pdf | 49.1 KB | 12/06/2019 10:30:AM |
Project Citation:
Crucini, Mario J., Telmer, Chris I., and Zachariadis, Marios. Replication data for: Understanding European Real Exchange Rates. Nashville, TN: American Economic Association [publisher], 2005. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116048V1
Project Description
Summary:
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We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries for the years 1975, 1980, 1985, and 1990. We find that for each of these years, after we control for differences in income and value-added tax (VAT) rates, there are roughly as many overpriced goods as there are underpriced goods between any two EU countries. We also find that good-by-good measures of cross-sectional price dispersion are negatively related to the tradeability of the good, and positively related to the share of non-traded inputs required to produce the good. We argue that these observations are consistent with a model in which retail goods are produced by combining a traded input with a non-traded input.
Scope of Project
Subject Terms:
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real exchange rates;
purchasing power parity;
Micro-prices;
local currency prices
JEL Classification:
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F31 Foreign Exchange
F31 Foreign Exchange
Geographic Coverage:
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European cities
Time Period(s):
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1975 – 1990 (Exact sampling dates are by consumption category and are common across cities.)
Data Type(s):
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event/transaction data
Collection Notes:
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The local currency prices were curated from a series of comprehensive retail price surveys coordinated across European (mostly capital) cities. Items are exact matches in terms of make, model and brand, though not indicated by brand for confidentiality reasons. Thus the data preserves the principle of spatial price comparisons of identical items to the extent possible at the time.
Methodology
Data Source:
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The retail price surveys were published in a series of volumes: Eurostat. Price structure of the community countries. Luxembourg: Commission of Eu-ropean Communities, Issues from 1975, 1980, 1985, and 1990. The data appendix provides information about supplementary data sources such as trade shares, shares of non-traded inputs into retail, VAT and GDP.
Unit(s) of Observation:
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Local currency prices,
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