Has the Euro Shrunk the Band? Relative Purchasing Power Parity Convergence in a Currency Union*
研究了加入欧洲经济与货币联盟对相对购买力平价趋同的影响，发现加入后与成员国的价格无行动区间缩小了17%，支持交易成本理论。
Abstract I study the effects of entry to the European Monetary Union (EMU) on relative purchasing power parity (PPP) convergence using monthly disaggregated price indices from 32 European countries from 1999 to 2016. I examine the entry of Cyprus, Malta, Slovakia, and Slovenia to the EMU, and I estimate the bands of inaction of relative prices before and after entry using a threshold autoregressive model. I find a positive effect of the EMU on relative PPP convergence: after entry, the bands of inaction with EMU members fell by 17 percent. Cross‐sectional evidence supports the theoretical prediction that bands of inaction are related to transaction costs.