Structural features of distributive trades and their impact on prices in the euro area
AbstractThe distributive trades sector, which is primarily accounted for by wholesale and retail trade, is not only economically important in its own right, but also relevant to monetary policy. Ultimately, it is retailers who set the actual prices of most consumer goods. They are the main interface between producers of consumer goods and consumers, with around half of private consumption accounted for by retail trade. The “value added” of this intermediation service can be substantial, as this accounts for, on average, about 25% of consumer prices. The purpose of this report is to analyse the structural features of the distributive trades sector and the developments within it, as well as how these may influence prices and price dynamics. This report contributes to a better understanding of the impact of the structural features of the distributive trades sector on prices and price-setting behaviour, thereby improving on previous research in this area. From a policy perspective, it highlights the importance of structural reforms that help enhance competition in this sector. This report uses a wide range of data sources – some of which are unique – to study an area that has been under-investigated, especially at the European level. There is, however, ample room for further research in this direction. JEL Classification: E58, F41
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Central Bank in its series Occasional Paper Series with number 128.
Date of creation: Sep 2011
Date of revision:
Contact details of provider:
Postal: Postfach 16 03 19, Frankfurt am Main, Germany
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/home/html/index.en.html
More information through EDIRC
Postal: Press and Information Division, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-22 (All new papers)
- NEP-CBA-2011-10-22 (Central Banking)
- NEP-CIS-2011-10-22 (Confederation of Independent States)
- NEP-EEC-2011-10-22 (European Economics)
- NEP-HME-2011-10-22 (Heterodox Microeconomics)
- NEP-OPM-2011-10-22 (Open Economy Macroeconomics)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications).
If references are entirely missing, you can add them using this form.