Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181345
Authors: 
Nilsen, Øivind Anti
Vange, Magne
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 7145
Abstract: 
The price-setting behaviour of manufacturing plants is examined using a large panel of monthly surveyed plant- and product-specific prices. The sample shows a high frequency of zero changes, relatively small price changes, and a strong seasonal price-change pattern. The intermittent feature of price changes is modelled with thresholds which are smaller in January, and a quadratic loss function associated with the distance from the target price. The findings show statistically significant pricing thresholds, which are only two-thirds in January, and partial adjustment parameters implying that 60% of the deviation between the target price and the current price is closed each month.
Subjects: 
price setting
micro data
simulated method of moments
JEL: 
E30
E31
E37
Document Type: 
Working Paper

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