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Survey evidence on price-setting patterns of Romanian firms

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  • Mihai Copaciu

    (National Bank of Romania, Monetary Policy and Modeling Department, Bucharest, Romania)

  • Florian Neagu

    (National Bank of Romania, Financial Stability Department, Bucharest, Romania)

  • Horia Braun-Erdei

    (ING Investment Management, Romania)

Abstract

This paper presents for Romanian firms the results of the first survey on price-setting patterns among the New Member States of the EU. Diverging from Inflation Persistence Network (IPN) findings, generally small firms perceive higher competitive pressure and adopt the market price, using a state-dependent rule, while lower perceived competition is consistent with medium and large firms using mark-up pricing. Prices are reviewed and changed more often than for EMU firms and are more flexible than wages. Similar to IPN evidence, contracts are the main sources of price stickiness. The survey suggests full price transmission of large unanticipated financial shocks. Copyright © 2009 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1484
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Bibliographic Info

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

Volume (Year): 31 (2010)
Issue (Month): 2-3 ()
Pages: 235-247

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Handle: RePEc:wly:mgtdec:v:31:y:2010:i:2-3:p:235-247

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

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  5. Coricelli, Fabrizio & Horváth, Roman, 2006. "Price Setting Behaviour: Micro Evidence on Slovakia," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5445, C.E.P.R. Discussion Papers.
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  8. Josef Baumgartner & Claudia Kwapil & Johann Scharler, 2005. "The Price-Setting Behavior of Austrian Firms: Some Survey Evidence," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 100, Oesterreichische Nationalbank (Austrian Central Bank).
  9. Apel, Mikael & Friberg, Richard & Hallsten, Kerstin, 2001. "Micro Foundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms," Working Paper Series 128, Sveriges Riksbank (Central Bank of Sweden).
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Cited by:
  1. Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, 2010. "Incrementos y rigideces de los salarios en Colombia: Un estudio a partir de una encuesta," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
  2. Harald Stahl, 2010. "Price adjustment in German manufacturing: evidence from two merged surveys," Managerial and Decision Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 31(2-3), pages 67-92.
  3. Alvarez González, Luis Julián, 2008. "What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 2(19), pages 1-36.
  4. Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, . "Formación e incrementos de salarios en Colombia: Un estudio microeconómico a partir de una encuesta a nivel de firma," Borradores de Economia 582, Banco de la Republica de Colombia.
  5. Ana María Iregui B. & Ligia Alba Malo B. & María Teresa Ramírez G., 2011. "Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms," BORRADORES DE ECONOMIA 008753, BANCO DE LA REPÚBLICA.
  6. Peter J. Klenow & Benjamin A. Malin, 2010. "Microeconomic Evidence on Price-Setting," NBER Working Papers 15826, National Bureau of Economic Research, Inc.
  7. Jacek Wallusch, 2012. "How frequently do consumer prices change in transition countries?," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(10), pages 921-928, July.
  8. Thorvardur Tjörvi Ólafsson & Ásgerdur Pétursdóttir & Karen Á. Vignisdóttir, . "Price setting in turbulent times. Survey evidence from Icelandic firms," Economics Working Papers, School of Economics and Management, University of Aarhus 2011-09, School of Economics and Management, University of Aarhus.
  9. Thorvardur Tjörvi Ólafsson & Ásgerdur Pétursdóttir & Karen Á. Vignisdóttir, 2011. "Price setting in turbulent times," Economics, Department of Economics, Central bank of Iceland wp54, Department of Economics, Central bank of Iceland.

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