Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152997
Authors: 
Álvarez, Luis J.
Dhyne, Emmanuel
Hoeberichts, Marco M.
Kwapil, Claudia
Le Bihan, Hervé
Lünnemann, Patrick
Martins, Fernando
Sabbatini, Roberto
Stahl, Harald
Vermeulen, Philip
Vilmunen, Jouko
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 563
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: 
consumer prices
price setting
Price stickiness
producer prices
survey data
JEL: 
C25
D40
E31
Document Type: 
Working Paper

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