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Understanding Price Stickiness: Firm-level Evidence on Price Adjustment Lags and Their Asymmetries

Dias, DA, Marques, CR, Martins, F and Silva, JMCS (2015) Understanding Price Stickiness: Firm-level Evidence on Price Adjustment Lags and Their Asymmetries OXFORD BULLETIN OF ECONOMICS AND STATISTICS, 77 (5). pp. 701-718.

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Abstract

We study the speed of price reactions to positive and negative demand and cost shocks. Our findings suggest that price adjustment lags vary in line with the predictions of optimal price setting models. Moreover, we find that the firms’reactions are asymmetric, and that theseasymmetriescannotbefullyexplainedbyanysingletheoreticalmodelofasymmetric price adjustment. Overall, these results suggest that the reaction to monetary policy shocks may depend on which firms or sectors are particularly affected by them and, therefore, that richer models are needed to fully understand the effects of monetary policy.

Item Type: Article
Subjects : Economics
Divisions : Faculty of Arts and Social Sciences > School of Economics
Authors :
AuthorsEmailORCID
Dias, DAUNSPECIFIEDUNSPECIFIED
Marques, CRUNSPECIFIEDUNSPECIFIED
Martins, FUNSPECIFIEDUNSPECIFIED
Silva, JMCSUNSPECIFIEDUNSPECIFIED
Date : 1 October 2015
Identification Number : 10.1111/obes.12083
Uncontrolled Keywords : Social Sciences, Science & Technology, Physical Sciences, Economics, Social Sciences, Mathematical Methods, Statistics & Probability, Business & Economics, Mathematical Methods In Social Sciences, Mathematics, MONETARY-POLICY, STICKY PRICES, CONSUMER SEARCH, PHILLIPS-CURVE, MENU COSTS, EURO AREA, US, INFLATION, FACTS, FREQUENCY
Related URLs :
Depositing User : Symplectic Elements
Date Deposited : 11 May 2016 14:32
Last Modified : 11 May 2016 14:32
URI: http://epubs.surrey.ac.uk/id/eprint/810676

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