Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19630
Authors: 
Álvarez, Luis J.
Dhyne, Emmanuel
Hoeberichts, Marco
Kwapil, Claudia
Le Bihan, Hervé
Lünnemann, Patrick
Martins, Fernando
Sabbatini, Roberto
Stahl, Harald
Vermeulen, Philip
Vilmunen, Juoko
Year of Publication: 
2006
Series/Report no.: 
Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2006,02
Abstract: 
This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are: (i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and coordination failure theories are important, whereas menu or information costs are judged much less relevant by firms.
Subjects: 
Price setting
Price stickiness
Consumer prices
Producer prices
survey data
JEL: 
E31
D40
C25
Document Type: 
Working Paper

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