Why do prices rise faster than they fall
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Linda A. Toolsema; Jan P. A. M. Jacobs
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Article
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2007
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John Wiley and Sons
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English
โ 170 KB
## Abstract Empirical literature shows that prices respond asymmetrically to cost changes in many markets, rising faster than falling. An example is the mortgage rate, which follows an increase in capital market rates faster than a decrease. We examine various theoretical explanations for asymmetri