Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153052
Authors: 
Cornille, David
Dossche, Maarten
Year of Publication: 
2006
Series/Report no.: 
ECB Working Paper 618
Abstract: 
This paper documents the patterns and determinants of price setting in the Belgian industry. We analyse the micro data underlying the Producer Price Index (PPI) over the period from February 2001 to January 2005. On average only one out of four prices changes in a typical month, whereas the absolute size of a price change amounts to 6%. The frequencies of price adjustment are particularly heterogeneous across sectors, which is determined by heterogeneity in the market and cost structure. We find no signs of downward nominal rigidity. A joint analysis of sizes and frequencies of price adjustment across time shows that price setting is characterised by both time- and state-dependent pricing. About 38% of the exported goods are a¤ected by pricing-to-market.
Subjects: 
nominal price rigidity
pricing-to-market
producer price setting
staggering
state-dependent pricing
time-dependent pricing
JEL: 
D40
E31
Document Type: 
Working Paper

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