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The price data complied by Crucini et al. (2005) comes from fourEurostat surveys of retail prices in the capital cities of EU countriesfor each of the years 1975, 1980, 1985 and 1990.6 Across the surveys,the goods maintain a high degree of comparability across both locationand time. The retail price of a good in a given country is the averageof surveyed prices across different sales points within the capitalcity of that country. Furthermore, the authors remove the effect of differentvalue added tax (VAT) rates across countries from the retailprices. In total, there are 13 countries in the sample—Austria, Belgium,Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg,
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