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The Price SeTTing Behavior in colomBia: evidence from PPi micro data

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  • Juan manuel Julio

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  • Héctor manuel Zárate

Abstract

In this paper we explore the price setting behaviorof Colombian producers and importers using a unique database containing the monthly price reportsunderlying the Colombian PPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are prices sticky or flexible? 2. Is a price increase more likely than a decrease? 3. Are price changes synchronized? 4. Is the pricing rule state or time dependent? 5. Are price changes sizable? Answers to these questions provide some of the micro fundamentalsfor the design of monetary policy in this country.

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Bibliographic Info

Article provided by BANCO DE LA REPÚBLICA - ESPE in its journal ENSAYOS SOBRE POLÍTICA ECONÓMICA.

Volume (Year): (2008)
Issue (Month): ()
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Handle: RePEc:col:000107:005287

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Keywords: Price Setting Behavior; Sticky Prices; PPI;

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Citations

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Cited by:
  1. Andrés González & Hernán Rincón & Norberto Rodríguez, . "La transmisión de los choques a la tasa de cambio sobre la inflación de los bienes importados en presencia de asimetrías," Borradores de Economia 532, Banco de la Republica de Colombia.
  2. Luis J. Alvarez, 2007. "What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?," Kiel Working Papers 1330, Kiel Institute for the World Economy.
  3. Andrés González & Hernán Rincóm & Norberto Rodríguez, 2008. "La transmisión de los choques a la tasa de cambio sobre la inflación," BORRADORES DE ECONOMIA 005089, BANCO DE LA REPÚBLICA.
  4. Pietro Bonaldi & Andrés González & Diego Rodríguez, 2010. "Importancia de las rigideces nominales y reales en Colombia: un enfoque de equilibrio general dinámico y estocástico," BORRADORES DE ECONOMIA 006857, BANCO DE LA REPÚBLICA.
  5. Andrés González & Omar mendoza & Hernán Rincón & Norberto Rodríguez, 2010. "Ciclo económico y efecto inflacionario de la depreciación de la moneda," BORRADORES DE ECONOMIA 007194, BANCO DE LA REPÚBLICA.
  6. Luis Eduardo Arango & Luz Karine Ardila & Miguel Igancio Gómez, 2010. "Efecto del cambio del salario mínimo en el precio de las comidas fuera del hogar en Colombia," BORRADORES DE ECONOMIA 006621, BANCO DE LA REPÚBLICA.
  7. Juan Manuel Julio & Héctor Manuel Zárate & Manuel Dario Hernández, 2010. "The Stickiness of Colombian Consumer Prices," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
  8. Peter J. Klenow & Benjamin A. Malin, 2010. "Microeconomic Evidence on Price-Setting," NBER Working Papers 15826, National Bureau of Economic Research, Inc.

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