IDEAS home Printed from https://ideas.repec.org/p/ekd/002596/259600114.html
   My bibliography  Save this paper

Why are some prices stickier than others? Firm-data evidence on price adjustment lags

Author

Listed:
  • Fernando MARTINS
  • Daniel A. DIAS
  • J.M.C. SANTOS SILVA
  • Carlos ROBALO MARQUES

Abstract

Infrequent price changes at the firm level are now well documented in the literature. However, a number of issues remain partly unaddressed. This paper contributes to the literature on price stickiness by investigating the lags of price adjustments to different types of shocks. We find that adjustment lags to cost and demand shocks vary with firm characteristics, namely the firm's cost structure, the type of pricing policy, and the type of good. We also document that firms react asymmetrically to demand and cost shocks, as well as to positive and negative shocks, and that the degree and direction of the asymmetry varies across firms. JEL Classification: C41, D40, E31
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Fernando MARTINS & Daniel A. DIAS & J.M.C. SANTOS SILVA & Carlos ROBALO MARQUES, 2010. "Why are some prices stickier than others? Firm-data evidence on price adjustment lags," EcoMod2010 259600114, EcoMod.
    • Handle: RePEc:ekd:002596:259600114
    as

    Download full text from publisher

    File URL: http://www.ecomod.net/sites/default/files/document-conference/ecomod2010/1215.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luong, Phat V. & Xu, Xiaowei, 2020. "Pass-through of commodity price shocks in distribution channels with risk-averse agents," International Journal of Production Economics, Elsevier, vol. 226(C).
    2. Csilla Königswieser & Benjamin Neudorfer & Martin Schneider, 2021. "Supplement to “OeNB climate risk stress test – modeling a carbon price shock for the Austrian banking sector”," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 42.
    3. Serafín Frache & Rodrigo Lluberas & Javier Turen, 2021. "Belief-Dependent Pricing Decisions," Documentos de trabajo 2021007, Banco Central del Uruguay.

    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekd:002596:259600114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.