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Dinámica de Precios en Chile: Evidencia con datos de Supermercados

Author

Listed:
  • Gastón Chaumont
  • Miguel Fuentes
  • Felipe Labbé
  • Alberto Naudon

Abstract

In this paper we use a new weekly database of scanner-level prices for the Chilean economy to characterize the price-setting behavior in the supermarket industry. This period corresponds to an episode of relatively high inflation marked by a boom and a subsequent bust (from July 2007 to July 2009). Results show that prices have an average duration slightly greater than two weeks and that price changes are more frequent in Chilean supermarket than in those of other countries. Besides, changes are smaller in absolute value and price change distributions are roughly symmetric. We also find a positive and robust correlation between the absolute size of price changes and price duration. In addition, an inflation variance decomposition exercise shows that price variability is mainly explained by price change variability. Altogether, this evidence points toward a time-dependent pricing behavior in Chilean supermarkets.

Suggested Citation

  • Gastón Chaumont & Miguel Fuentes & Felipe Labbé & Alberto Naudon, 2011. "Dinámica de Precios en Chile: Evidencia con datos de Supermercados," Working Papers Central Bank of Chile 642, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:642
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_642.pdf
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    References listed on IDEAS

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    3. Gastón Chaumont & Miguel Fuentes & Felipe Labbé & Alberto Naudon, 2011. "A Reassessment of Flexible Price Evidence Using Scanner Data: Evidence from an Emerging Economy," Working Papers Central Bank of Chile 641, Central Bank of Chile.
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    Cited by:

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    3. J. Peña & E. Prades, 2021. "Price setting in Chile: Micro evidence from consumer on-line prices during the social outbreak and Covid-19," Working Papers Central Bank of Chile 906, Central Bank of Chile.

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