This paper first updates the statistical sources underlying the construction of the Bank of Italy's price-competitiveness indicators and compares the new measures with those currently in use. It then introduces a novel methodology analysing price-competitiveness developments in selected markets and applies it to the four main euro-area countries.
Price-competitiveness developments since 1999 of the four main euro-area countries, in particular Spain, are more favourable according to the new indicators.
Moreover, whereas France and Germany have displayed similar developments in euro and non-euro area markets, Italy and Spain have performed better outside than within the euro area, confirming the usefulness of a disaggregated analysis.
Published in 2019 in: Journal of Economic and Social Measurement, v. 44, 2-3, pp. 89-116
