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Price-Setting Policy Determinants: Micro-Evidence from Brazil

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  • José Luiz Rossi Júnior
  • Marcelo L. Moura

Abstract

The paper studies the determinants of the frequency of price changes from survey data on Brazilian companies. Strong evidence of price-nominal rigidities is found in the data with average and median price durations very close to results reported for the euro area and the United States. We find that empirical determinants of price-change duration are mostly competition, size, product specialisation and sector dummies.

Suggested Citation

  • José Luiz Rossi Júnior & Marcelo L. Moura, 2008. "Price-Setting Policy Determinants: Micro-Evidence from Brazil," Business and Economics Working Papers 050, Unidade de Negocios e Economia, Insper.
    • Handle: RePEc:aap:wpaper:050
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    File URL: https://repositorio.insper.edu.br/handle/11224/5790
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    References listed on IDEAS

    as
    1. Ignazio Angeloni & Luc Aucremanne & Michael Ehrmann & Jordi Galí & Andrew Levin & Frank Smets, 2006. "New Evidence on Inflation Persistence and Price Stickiness in the Euro Area: Implications for Macro Modeling," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 562-574, 04-05.
    2. Luis J. Álvarez & Emmanuel Dhyne & Marco Hoeberichts & Claudia Kwapil & Hervé Le Bihan & Patrick Lünnemann & Fernando Martins & Roberto Sabbatini & Harald Stahl & Philip Vermeulen & Jouko Vilmunen, 2006. "Sticky Prices in the Euro Area: A Summary of New Micro-Evidence," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 575-584, 04-05.
    3. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
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