Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/233762
Authors: 
Snir, Avichai
Chen, Haipeng (Allan)
Levy, Daniel
Year of Publication: 
2021
Citation: 
[Journal:] Economics Letters [ISSN:] 0165-1765 [Issue:] forthcoming (Article No.:) 109885
Abstract: 
We use micro level retail price data from convenience stores to study the link between 0-ending price points and price rigidity during a period of a runaway inflation, when the annual inflation rate was in the range of 60%–430%. Surprisingly, we find that more round prices are less likely to adjust, and when they do adjust, the average adjustments are larger. These findings suggest that price adjustment barriers associated with round prices are strong enough to cause a systematic delay in price adjustments even in a period of a runaway inflation, when 85 percent of the prices change every month.
Subjects: 
Sticky Prices
Rigid Prices
0-Ending Price Points
9-Ending Price Points
Runaway Inflation
Hyperinflation
Cost of Price Adjustment
Menu Cost
JEL: 
E31
L16
D40
D91
L11
M20
M30
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

Files in This Item:
File
Size





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