Title of article
When dofirmsadjustprices?Evidencefrommicropaneldata
Author/Authors
Sarah M. Lein، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
20
From page
696
To page
715
Abstract
The price-settingbehaviorofmanufacturingfirmsisexaminedusingalargepanelof
quarterlyfirmsurveydatafrom1984to2007,whichallowschangesinfirms’pricesto
be linkedtoseveralfirm-specificvariables.Theresultsshowthatstate-dependent
pricingisclearlypresentinalow-inflationenvironmentandthatvariablesmeasuring
thecurrentsituationofthefirm,especiallycostsforintermediateproducts,are
importantdeterminantsofpriceadjustments.Comparedtopurelytime-dependent
features,thestate-dependentvariablessignificantlyaddtotheexplanatorypowerofa
price adjustmentprobabilitymodel.Macroeconomicfactorsaresignificantbut
contributelittleintermsofthegoodnessoffit.Furthermore,whentakingintoaccount
stickyplanmodelsbyexcludingpossiblypredeterminedpricechanges,theimportance
of state-dependentfactorsbecomesevengreater
Keywords
Price settingbehaviorTime-dependent pricingState-dependent pricingSticky plansCosts
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846423
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