Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320529 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17935
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine how macroeconomic news affects firms' extensive-margin price-setting plans in a survey that we rolled out with randomized daily invitations. These plans predict future realized inflation. Using a high-frequency event study framework, we find that inflation and employment surprises imply significant and sizable revisions in firms' pricing plans. There is a limited role for news about the trade balance, but no significant role for other commonly studied data releases, e.g., industrial production. We also study news coverage and agents' news search behavior, finding that the intensive-margin response of media coverage and news search may partly drive our main results.
Subjects: 
price-setting
firms
daily data
macroeconomic data releases
JEL: 
E30
E31
E32
C83
Document Type: 
Working Paper

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