The Behaviour of Producer Prices: Some Evidence from the French PPI Micro Data
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In this article, the authors provided some new empirical features on price setting behavior for French producers using micro data underlying the producer and business-services price indices over the period 1994-2005.Abstract:
This paper provides some new empirical features on price setting behaviour for French producers using micro data underlying the producer and business-services price indices over the period 1994-2005. Some crucial methodological issues on the collection of producer prices are raised. Then, the main features of producers' price setting are presented: producer prices are modified quite frequently and by small amounts. A high heterogeneity across sectors is also observed: business-services prices change less often than industrial producer prices. The data lend some support to predictions of both time- and state-dependence models: Taylor contracts are not unusual but prices also respond to the changes in the firm's economic conditions. Nevertheless, time-dependent models are shown to be the most relevant theories to explain the producer price rigidity.read more
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Price Setting in the Euro Area : Some Stylised Facts from Individual Producer Price Data
Philip Vermeulen,Daniel A. Dias,Maarten Dossche,Erwan Gautier,Ignacio Hernando,Roberto Sabbatini,Harald Stahl +6 more
TL;DR: In this paper, the authors studied the producer price setting in 6 countries of the euro area: Germany, France, Italy, Spain, Belgium and Portugal, and found that prices change very often in the energy sector, less often in food and intermediate goods and least often in non-durable nonfood and durable goods.
Price setting in the euro area: Some stylized facts from Individual Consumer Price Data. NBB Working Paper Nr.74, September 2005
Emmanuel Dhyne,Luis J. Álvarez,Hervé Le Bihan,Giovanni Veronese,Daniel Dias,Johannes Hoffmann,Nicole Jonker,Patrick Lünnemann,Fabio Rumler,Jouko Vilmunen +9 more
TL;DR: In this paper, the authors document patterns of price setting at the retail level in the euro area, summarized in six stylized facts: the average euro area monthly frequency of price adjustment is 15 p.c.
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References
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Financial Systems and the Role of Banks in Monetary Policy Transmission in the Euro Area
Michael Ehrmann,Michael Ehrmann,Leonardo Gambacorta,Leonardo Gambacorta,Jorge Martínez-Pagés,Patrick Sevestre,Andreas Worms +6 more
TL;DR: In this article, a comprehensive comparison of the structure of banking and financial markets in the euro area is presented, based on which several hypotheses about the role of banks in monetary policy transmission are developed.
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The Rigidity of Prices
TL;DR: This paper examined the behavior of individual buyers' prices for certain products used in manufacturing and found that prices are not rigid down-ward and fixed costs of changing prices at least to some buyers seem trivial.
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The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence
Silvia Fabiani,Martine Druant,Ignacio Hernando,Claudia Kwapil,Bettina Landau,Claire Loupias,Fernando Martins,Fernando Martins,Thomas Mathae,Roberto Sabbatini,Harald Stahl,Ad Stokman +11 more
TL;DR: In this paper, the authors investigated the pricing behavior of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks, covering more than 11,000 firms and found that firms operate in monopolistically competitive markets, where prices are mostly set following markup rules and where price discrimination is common.