|
EconStor >
Humboldt-Universität Berlin >
Sonderforschungsbereich 649: Ökonomisches Risiko, Humboldt-Universität Berlin >
SFB 649 Discussion Papers, HU Berlin >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/56736
|
| | |
Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Becker, Sascha | | en_US |
| dc.date.accessioned | | 2011-03-24 | | en_US |
| dc.date.accessioned | | 2012-04-05T16:21:22Z | | - |
| dc.date.available | | 2012-04-05T16:21:22Z | | - |
| dc.date.issued | | 2011 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/56736 | | - |
| dc.description.abstract | | Recent monetary search and Calvo-type models predict that the relationship between inflation and price dispersion is U-shaped, implying an optimal rate of inflation above zero. Moreover, monetary search models emphasize a critical dependence of the real effects of inflation on sellers' market power, whereas Calvotype models suggest that the degree of price rigidity significantly affects the inflation - price dispersion nexus. Using a new set of highly disaggregated sectoral price data from a panel of European countries, this paper contributes to the literature by testing the empirical relevance of these two theoretical predictions. In line with monetary search theory, a U-shaped profile is found, provided that markups are sufficiently high, but the relationship breaks down under a more competitive environment. Contrarily, no evidence is found to support the contentions of Calvo-type models: U-shaped effects of inflation occur in product sectors with sticky as well as highly flexible prices. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | SFB 649, Economic Risk Berlin | | en_US |
| dc.relation.ispartofseries | | SFB 649 discussion paper 2011-019 | | en_US |
| dc.subject.jel | | C23 | | en_US |
| dc.subject.jel | | D40 | | en_US |
| dc.subject.jel | | E31 | | en_US |
| dc.subject.jel | | F15 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | inflation | | en_US |
| dc.subject.keyword | | relative price variability | | en_US |
| dc.subject.keyword | | price level index | | en_US |
| dc.subject.keyword | | Euro-area | | en_US |
| dc.subject.keyword | | market structure | | en_US |
| dc.subject.keyword | | monetary search model | | en_US |
| dc.subject.keyword | | dynamic panel data models | | en_US |
| dc.subject.stw | | Taxigewerbe | | en_US |
| dc.subject.stw | | Betrug | | en_US |
| dc.subject.stw | | Vertrauensgüter | | en_US |
| dc.subject.stw | | Asymmetrische Information | | en_US |
| dc.subject.stw | | Feldforschung | | en_US |
| dc.subject.stw | | Athen | | en_US |
| dc.title | | What drives the relationship between inflation and price dispersion? Market power vs. price rigidity | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 654797668 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | SFB 649 Discussion Papers, HU Berlin
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|