Journal Article

Fünfzig Jahre nach Rom: Ist die EU ein Binnenmarkt?

Zeitschrift für Wirtschaftspolitik, 56(3): 1–28

Fifty years after the Rome Treaties, is there empirical evidence for arguing that the EU today is a fully integrated goods and services markets in which the "law of one price" prevails at large? Based on a number of consumer price surveys for goods and services in major cities all over the world since the seventies and comparing the EU to a benchmark, the US market, the paper is affirmative. Price dispersion between EU cities has declined with the Eurozone as the core EU region in the lead surrounded by two concentric circles. EU goods price dispersion has gnerally approximated the level in the US market. Yet, price dispersion has declined throughout the world underlining the relevance of global integration rather tha only regional integration. Furthermore, there is ample evidence that gravity factors against the "law of one price" , such as distance costs and borders, are still effective.

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JEL Classification
F15