✦ LIBER ✦

Price adjustment in German manufacturing: evidence from two merged surveys

✍ Scribed by Harald Stahl

Publisher: John Wiley and Sons
Year: 2010
Tongue: English
Weight: 273 KB
Volume: 31
Category: Article
ISSN: 0143-6570
DOI: 10.1002/mde.1485

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

This paper presents new evidence on the formation of producer prices. The database combines a one‐time survey that was conducted in June 2004 on a sample of 1200 firms in manufacturing and time series information on price adjustment of the same firms. Twenty percent of firms set prices as time‐dependent but neither Taylor nor Calvo‐type price setting describes them aptly. Few firms are forward‐looking. According to the one‐time survey, fixed contracts and coordination failure are the main reason for postponing price adjustment. However, the hazard rates for price changes from the time series information do not support this. Copyright © 2009 John Wiley & Sons, Ltd.

📜 SIMILAR VOLUMES

How are prices adjusted in response to s

How are prices adjusted in response to shocks? Survey evidence from Austrian firms

✍ Claudia Kwapil; Johann Scharler; Josef Baumgartner 📂 Article 📅 2010 🏛 John Wiley and Sons 🌐 English ⚖ 151 KB

## Abstract In this paper we investigate the response of prices to shocks based on a survey of Austrian firms. We find that firms are more likely to change prices after a cost shock than after a demand shock. In this vein, our analysis suggests that regular customers are an important explanation fo