Explaining the persistent effect of the Euro-Changeover on German restaurant prices
This paper studies the long-run effect of the 2002 changeover on restaurant prices in Germany. German restaurant prices increased significantly when the euro was introduced as a new currency but rather than returning to their re-changeover trend, restaurant prices appear to have stabilized on a high...
Gespeichert in:
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| Dokumenttyp: | Book/Monograph Arbeitspapier |
| Sprache: | Englisch |
| Veröffentlicht: |
Heidelberg
Universitätsbibliothek der Universität Heidelberg
October 2011
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| Schriftenreihe: | Discussion Paper Series / University of Heidelberg, Department of Economics
no. 518 |
| In: |
Discussion paper series (no. 518)
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| Schlagworte: | |
| Online-Zugang: | Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:16-opus-125678 Verlag, Volltext: http://www.ub.uni-heidelberg.de/archiv/12567 Resolving-System, Volltext: http://hdl.handle.net/10419/127335 
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| Verfasserangaben: | Thomas A. Eife |
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| 490 | 1 | |a Discussion Paper Series / University of Heidelberg, Department of Economics |v no. 518 | |
| 520 | |a This paper studies the long-run effect of the 2002 changeover on restaurant prices in Germany. German restaurant prices increased significantly when the euro was introduced as a new currency but rather than returning to their re-changeover trend, restaurant prices appear to have stabilized on a higher path. This stands in contrast to the prediction of menu costs models or models of confusion-induced price increases as these models can only account for a transitory effect. The persistence of the increase suggests the existence of more than one price equilibrium. This multiplicity of price equilibria is a central part of the explanation proposed in the paper. | ||
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