EconStor >
Humboldt-Universität zu 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 FieldValueLanguage
dc.contributor.authorBecker, Saschaen_US
dc.date.accessioned2011-03-24en_US
dc.date.accessioned2012-04-05T16:21:22Z-
dc.date.available2012-04-05T16:21:22Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/56736-
dc.description.abstractRecent 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.isoengen_US
dc.publisherSFB 649, Economic Risk Berlinen_US
dc.relation.ispartofseriesSFB 649 discussion paper 2011-019en_US
dc.subject.jelC23en_US
dc.subject.jelD40en_US
dc.subject.jelE31en_US
dc.subject.jelF15en_US
dc.subject.ddc330en_US
dc.subject.keywordinflationen_US
dc.subject.keywordrelative price variabilityen_US
dc.subject.keywordprice level indexen_US
dc.subject.keywordEuro-areaen_US
dc.subject.keywordmarket structureen_US
dc.subject.keywordmonetary search modelen_US
dc.subject.keyworddynamic panel data modelsen_US
dc.subject.stwTaxigewerbeen_US
dc.subject.stwBetrugen_US
dc.subject.stwVertrauensgüteren_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwFeldforschungen_US
dc.subject.stwAthenen_US
dc.titleWhat drives the relationship between inflation and price dispersion? Market power vs. price rigidityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn654797668en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

Files in This Item:
File Description SizeFormat
654797668.pdf562.76 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.