Asymmetric Price Adjustment in the Small PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Asymmetric Price Adjustment in the Small PDF full book. Access full book title Asymmetric Price Adjustment in the Small by Haipeng (Allan) Chen. Download full books in PDF and EPUB format.
Author: Haipeng (Allan) Chen
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Analyses of a large retail scanner price data set reveal a new and surprising regularity - small price increases occur more frequently than small price decreases for price changes of up to 10 cents. That is, we find asymmetric price adjustment quot;in the small.quot; Furthermore, it turns out that inflation offers only a partial explanation for the finding. Indeed, substantial proportion of the asymmetry remains unexplained, even after accounting for the inflation. For example, the asymmetry holds also after excluding periods of inflation from the data, and even for products whose price had not increased. The findings hold for different aggregate and disaggregate measures of inflation and also after allowing for lagged price adjustments.
Author: Haipeng (Allan) Chen
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Analyses of a large retail scanner price data set reveal a new and surprising regularity - small price increases occur more frequently than small price decreases for price changes of up to 10 cents. That is, we find asymmetric price adjustment quot;in the small.quot; Furthermore, it turns out that inflation offers only a partial explanation for the finding. Indeed, substantial proportion of the asymmetry remains unexplained, even after accounting for the inflation. For example, the asymmetry holds also after excluding periods of inflation from the data, and even for products whose price had not increased. The findings hold for different aggregate and disaggregate measures of inflation and also after allowing for lagged price adjustments.
Author: Laurence M. Ball
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 29
Get Book Here
Book Description
Author: Georg Muller
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
We investigate asymmetric price responses by considering a unique, highly disaggregate retailer- and product-level time series at a major supermarket chain. We find asymmetry exists, but is limited in scope and there is no evidence of a pervasive chain wide asymmetric pricing strategy. To explain product level variation, we borrow from both economic and marketing perspectives to suggest menu costs, operational efficiency, competition, and consumer perceptions as important factors. The evidence suggests an efficiency-based rationale for asymmetry. This study complements that of Peltzman (2000. J. Polit. Econ. 108(3): 466-502.) who found no systematic asymmetry in a study of the same data considered at a more aggregate level.
Author: Jakob Brochner Madsen
Publisher:
ISBN: 9780864225603
Category : Prices
Languages : en
Pages : 9
Get Book Here
Book Description
Author: Tore Ellingsen
Publisher:
ISBN:
Category : Prices
Languages : en
Pages : 23
Get Book Here
Book Description
Author: Alexandra Putzová
Publisher:
ISBN:
Category :
Languages : en
Pages : 30
Get Book Here
Book Description
Author: Tore Ellingsen
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
Get Book Here
Book Description
Author: Walter Enders
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Recent empirical work on the Phillips curve has focused on the convexity of the relationship between inflation and unemployement. In this paper we argue that another potentially important source of nonlinearity in the Phillips curve is to be found in asymmetric price adjustment. If prices rise more easily than they fall, then a threshold autoregressive specification seems a natural framework within which to reexamine the Phillips curve. We examine the Australian data used by a recent article on the Phillips curve and show that there are significant asymmetries in inflation, the Phillips curve and in the behavior of unit labor costs.
Author: Laurence M. Ball
Publisher:
ISBN:
Category :
Languages : en
Pages : 261
Get Book Here
Book Description
This paper considers a possible explanation for asymmetric adjustment of nominal prices. We present a menu-cost model in which positive trend inflation causes firms' relative prices to decline automatically between price adjustments. In this environment, shocks that raise firms' desired prices trigger larger price responses than shocks that lower desired prices. We use this model of asymmetric adjustment to address three issues in macroeconomics: the effects of aggregate demand, the effects of sectoral shocks, and the optimal rate of inflation.
Author: Michael Knetter
Publisher:
ISBN:
Category : Exports
Languages : en
Pages : 44
Get Book Here
Book Description
The theoretical literature on pricing-to-market has identified two possible reasons why the elasticity of prices to exchange rate changes may be asymmetric across appreciations and depreciations. If firms are attempting to increase market shares in foreign markets subject to the possibility of trade restrictions, then more pricing-to-market may occur during appreciations of the exporter's currency. If firms face capacity constraints in their distribution networks, then pricing-to-market may be exaggerated during periods of depreciation of the exporters currency. This paper uses panel data on German and Japanese 7-digit industry exports to compare these competing explanations for asymmetries in pricing-to-market behavior. While the data seldom reject the null hypothesis of a symmetric response of prices to exchange rates, some industries, notably automobiles, provide empirical support for the market share model. Only a pooled regression with Japanese data supports the marketing bottlenecks model.
