Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153133
Authors: 
Gautier, Erwan
Year of Publication: 
2006
Series/Report no.: 
ECB Working Paper 699
Abstract: 
This paper provides some new empirical features on price setting behaviour for French producers using micro data underlying the producer and business-services price indices over the period 1994-2005. Some crucial methodological issues on the collection of producer prices are raised. Then, the main features of producers' price setting are presented: producer prices are modified quite frequently and by small amounts. A high heterogeneity across sectors is also observed: business-services prices change less often than industrial producer prices. The data lend some support to predictions of both time- and state-dependence models: Taylor contracts are not unusual but prices also respond to the changes in the firm's economic conditions. Nevertheless, time-dependent models are shown to be the most relevant theories to explain the producer price rigidity.
Subjects: 
frequency of price change
price duration
Price stickiness
producer price index
JEL: 
E31
D43
L11
L16
Document Type: 
Working Paper

Files in This Item:
File
Size
699.54 kB





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