Abstract
We analyze the behavior of relative food prices for a set of 24 European countries observed during the period January 1996–December 2007. We use recent methods for the analysis of nonstationary panels to show that food price dynamics can be decomposed into a common component and an idiosyncratic component. From this decomposition we compute and analyze the real exchange rates for a set of food products. We find that countries included in the euro area are more market integrated; that is, real exchange rates tend to converge, than countries that did not adopt euro.
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Gutierrez, L., Brasili, C., Fanfani, R. (2010). The Behavior of Relative Food Prices: An Analysis across the European Countries. In: Ball, V., Fanfani, R., Gutierrez, L. (eds) The Economic Impact of Public Support to Agriculture. Studies in Productivity and Efficiency, vol 7. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6385-7_14
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DOI: https://doi.org/10.1007/978-1-4419-6385-7_14
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