This paper uses a unique micro data set to test for the presence of price asymmetries at the firm level. We find that firm pricing is indeed asymmetric, as Tobin (1972) suggested. Moreover, there is strong evidence to support Ball and Mankiw's (1994) suggestion that firm price asymmetry is dependent on inflation.
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Paper provided by Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER) in its series Papers with number
96-013.
Length: 32 pages Date of creation: 1996 Date of revision: Handle: RePEc:fth:purkib:96-013
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Find related papers by JEL classification: D40 - Microeconomics - - Market Structure and Pricing - - - General E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Raghbendra Jha & Hari K. Nagarajan, 2002.
"Noisy Vertical Markets,"
ASARC Working Papers
2002-04, Australian National University, Australia South Asia Research Centre.
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