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Prices over the business cycle: micro-level evidence from scanner data

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  • Daniel Melser

    (RMIT University)

Abstract

A controversy has recently developed surrounding the extent to which prices are influenced by the business cycle. We provide some micro-level evidence on this issue using a large US scanner data set. Our model identifies the business cycle effect by looking at variation in unemployment and house price growth across US regions and compares this with individual price movements based upon a general hedonic formulation. We find little support for goods prices moving in response to fluctuations in the unemployment rate or house prices.

Suggested Citation

  • Daniel Melser, 2016. "Prices over the business cycle: micro-level evidence from scanner data," Economics Bulletin, AccessEcon, vol. 36(4), pages 1922-1928.
    • Handle: RePEc:ebl:ecbull:eb-16-00411
    as

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    References listed on IDEAS

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    Cited by:

    1. Glandon, PJ, 2018. "Sales and the (Mis)measurement of price level fluctuations," Journal of Macroeconomics, Elsevier, vol. 58(C), pages 60-77.

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    More about this item

    Keywords

    Business cycle; scanner data; price cycles; sticky prices; hedonic regression.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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