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Price Rigidity in Turkey: Evidence from Micro Data

Listed author(s):
  • M. Utku Özmen
  • Orhun Sevinç

In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6,000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy.

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File URL: http://hdl.handle.net/10.1080/1540496X.2015.1047304
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Article provided by Taylor & Francis Journals in its journal Emerging Markets Finance and Trade.

Volume (Year): 52 (2016)
Issue (Month): 4 (April)
Pages: 1029-1045

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Handle: RePEc:taf:emfitr:v:52:y:2016:i:4:p:1029-1045
DOI: 10.1080/1540496X.2015.1047304
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