Price differentials between Hungary and EU Member States
Hungarian Competition Authority, Competition Culture Centre
Aim of the Project:
The causes of price differentials between European countries were investigated with theoretical and empirical methods. Following a thorough literature review we analysed the potential short run effect of competition policy on prices. We then investigated trends in price dispersion using three product-level datasets (Eurostat, EIU and UBS). The descriptive analysis was followed by a panel econometric analysis to uncover the role of real economic convergence and import competition in the evolution of price levels. The research was funded by a grant of the Hungarian Competition Authority, Competition Culture Centre and was carried out between May 2007 and February 2008.