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Survey evidence on price-setting patterns of Romanian firms

  • Mihai Copaciu

    (National Bank of Romania, Monetary Policy and Modeling Department, Bucharest, Romania)

  • Florian Neagu

    (National Bank of Romania, Financial Stability Department, Bucharest, Romania)

  • Horia Braun-Erdei

    (ING Investment Management, Romania)

This paper presents for Romanian firms the results of the first survey on price-setting patterns among the New Member States of the EU. Diverging from Inflation Persistence Network (IPN) findings, generally small firms perceive higher competitive pressure and adopt the market price, using a state-dependent rule, while lower perceived competition is consistent with medium and large firms using mark-up pricing. Prices are reviewed and changed more often than for EMU firms and are more flexible than wages. Similar to IPN evidence, contracts are the main sources of price stickiness. The survey suggests full price transmission of large unanticipated financial shocks. Copyright © 2009 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1484
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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 31 (2010)
Issue (Month): 2-3 ()
Pages: 235-247

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Handle: RePEc:wly:mgtdec:v:31:y:2010:i:2-3:p:235-247
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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