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Price Rigidity in Slovakia: Some Facts and Causes

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  • Katarina Lukacsy

    (Economics Department, Central European University)

Abstract

This paper examines the price adjustment patterns, at the store level, in a transition economy. Empirical estimates of the extent of price rigidities are provided for selected final goods and services in Slovakia, and are compared with similar estimates from selected developed economies, namely the eurozone countries and U.S. The patterns of price changes found in Slovakia are somewhat similar to what was found for the western developed economies. Survival time analysis is employed to identify the effects of various macroeconomic indicators on the price change probabilities. Results show that variables such as productivity, wages, currency value and oil prices play important roles in the price adjustment process in Slovakia.

Suggested Citation

  • Katarina Lukacsy, 2009. "Price Rigidity in Slovakia: Some Facts and Causes," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 1(2).
    • Handle: RePEc:ttu:rebcee:17
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    References listed on IDEAS

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