%0 Generic
%A Eife, Thomas A.
%D 2011
%F heidok:12567
%R 10.11588/heidok.00012567
%T Explaining the Persistent Effect of the Euro-Changeover on German Restaurant Prices
%U https://archiv.ub.uni-heidelberg.de/volltextserver/12567/
%X 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.