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The frequency and size of price adjustment: microeconomic evidence

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  • Attila Rátfai

    (Central European University, Budapest, Hungary)

Abstract

This paper presents direct, non-parametric microeconomic evidence on pricing behavior and evaluates the findings in light of theories of nominal price rigidity. The main issues examined include the durability of price quotations and the size of price changes. The analysis is based on a unique high-frequency panel data set of consumer prices recorded in 1993-1996 in Hungary. The results indicate that price adjustment patterns in the sample are primarily consistent with implications of two-sided (S,s) pricing models. Copyright © 2007 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1381
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 28 (2007)
Issue (Month): 7 ()
Pages: 751-762

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Handle: RePEc:wly:mgtdec:v:28:y:2007:i:7:p:751-762

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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Cited by:
  1. Roman Horv�th, 2011. "The frequency and size of price changes: evidence from non-parametric estimations," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 4(2), pages 263-268, February.
  2. Erwan Gautier, 2009. "Les ajustements microéconomiques des prix : une synthèse des modèles théoriques et résultats empiriques," Revue d'économie politique, Dalloz, Dalloz, vol. 0(3), pages 323-372.
  3. Patrick Lünnemann & Thomas Y. Mathä, 2010. "Consumer price behaviour: evidence from Luxembourg micro data," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 31(2-3), pages 177-192.
  4. Péter Gábriel & �dám Reiff, 2010. "Price setting in Hungary-a store-level analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 31(2-3), pages 161-176.
  5. Zsuzsanna Zsibók & Balázs Varga, 2012. "Inflation Persistence in Hungary: a Spatial Analysis," Working Papers, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest 1203, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest.
  6. Wasim Shahid Malik & Ahsan ul Haq Satti & Ghulam Saghir, 2010. "Price Setting Behaviour of Pakistani Firms: Evidence from Four Industrial Cities of Punjab," PIDE-Working Papers, Pakistan Institute of Development Economics 2010:65, Pakistan Institute of Development Economics.
  7. Silvia Fabiani & Angela Gattulli & Giovanni Veronese & Roberto Sabbatini, 2010. "Price adjustment in Italy: evidence from micro producer and consumer prices," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 31(2-3), pages 93-104.
  8. Emmanuel Dhyne & Jerzy Konieczny & Fabio Rumler & Patrick Sevestre, 2009. "Price rigidity in the euro area - An assessment," European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 380, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  9. Caglayan, Mustafa & Filiztekin, Alpay, 2012. "The law of one price and the role of market structure," MPRA Paper 36975, University Library of Munich, Germany.
  10. Levy, Daniel, 2007. "Price Rigidity and Flexibility: New Empirical Evidence," MPRA Paper 2762, University Library of Munich, Germany.

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