|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/17868
|
| | |
| Title: | | Asymmetric Price Adjustment in the Small  |
| Authors: | | Levy, Daniel C. Chen, Haipeng (Allan) Ray, Sourav Bergen, Mark |
| Issue Date: | | 2007 |
| Series/Report no.: | | Kieler Arbeitspapiere 1356 |
| Abstract: | | Analyzing a large weekly retail transaction price dataset, we uncover a surprising regularity?small price increases occur more frequently than small price decreases for price changes of up to about 10 cents, while there is no such asymmetry for larger price changes. The asymmetry holds for the entire sample and for individual categories. We find that while inflation can explain some of the asymmetry, inflation is not the whole story as the asymmetry holds even after excluding inflationary periods from the data, and even for products whose price had not increased over the eight-year period. The findings hold for different measures of inflation and also after allowing for lagged price adjustments. We offer a consumer-based explanation for these findings. |
| Subjects: | | Asymmetric Price Adjustment Price Rigidity |
| JEL: | | D21 D11 L11 M31 E31 D80 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW
|
| Files in This Item:
| |
| File |
Description |
Size | Format |
| kap1356.pdf | | 550.26 kB | Adobe PDF |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/17868
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|