Are there downward nominal rigidities in product markets?
This paper looks at disaggregated price data in the UK to see if there is evidence of downward nominal rigidity: are prices less likely to fall after a downward shock than they are to rise after an upward shock? The test is to see if, as the mean inflation rate falls, the skewness, or the tendency for price changes to bunch-up at zero, rises. The paper finds no convincing evidence of downward nominal rigidity.
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References listed on IDEAS
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- Alastair Cunningham, 1996. "Measurement Bias in Price Indices: An Application to the UK's RPI," Bank of England working papers 47, Bank of England.
- Hasan Bakhshi & Andrew Haldane & Neal Hatch, 1999.
"Some Costs and Benefits of Price Stability in the United Kingdom,"
in: The Costs and Benefits of Price Stability, pages 133-198
National Bureau of Economic Research, Inc.
- Hasan Bakhshi & Andrew G. Haldane & Neal Hatch, 1998. "Some Costs and Benefits of Price Stability in the United Kingdom," NBER Working Papers 6660, National Bureau of Economic Research, Inc.
- Michael F. Bryan & Stephen G. Cecchetti, 1993.
"Measuring Core Inflation,"
NBER Working Papers
4303, National Bureau of Economic Research, Inc.
- Laurence Ball & N. Gregory Mankiw, 1995.
"Relative-Price Changes as Aggregate Supply Shocks,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 110(1), pages 161-193.
- Ball, L. & Mankiw, G.H., 1992. "Relative-Price Change as Aggregate Supply Shocks," Harvard Institute of Economic Research Working Papers 1609, Harvard - Institute of Economic Research.
- Laurence Ball & N. Gregory Mankiw, 1993. "Relative-price changes as aggregate supply shocks," Working Papers 93-13, Federal Reserve Bank of Philadelphia.
- Laurence Ball & N. Gregory Mankiw, 1992. "Relative-Price Changes as Aggregate Supply Shocks," NBER Working Papers 4168, National Bureau of Economic Research, Inc.
- Michael F. Bryan & Stephen G. Cecchetti, 1996.
"Inflation and the Distribution of Price Changes,"
NBER Working Papers
5793, National Bureau of Economic Research, Inc.
- Laurence Ball & N. Gregory Mankiw, 1994.
"A Sticky-Price Manifesto,"
NBER Working Papers
4677, National Bureau of Economic Research, Inc.
- Ball, Laurence & Mankiw, N. Gregory, 1994. "A sticky-price manifesto," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 41(1), pages 127-151, December.
- Laurence Ball & N. Gregory Mankiw, 1994. "A sticky-price manifesto," Proceedings, Federal Reserve Bank of Dallas, issue Apr.
- Anthony Yates & Bryan Chapple, 1996. "What Determines the Short-run Output-Inflation Trade-off?," Bank of England working papers 53, Bank of England.
- repec:fth:harver:1418 is not listed on IDEAS
- Summers, Lawrence, 1991. "How Should Long-Term Monetary Policy Be Determined? Panel Discussion," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(3), pages 625-31, August.
- Stiglitz, Joseph E, 1987. "The Causes and Consequences of the Dependence of Quality on Price," Journal of Economic Literature, American Economic Association, vol. 25(1), pages 1-48, March.
- Simon Hall & Mark Walsh & Anthony Yates, 1997. "How do UK companies set prices?," Bank of England working papers 67, Bank of England.
- Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September.
- Anil K Kashyap, 1995. "Sticky Prices: New Evidence from Retail Catalogs," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 245-274.
- J. Bradford De Long & Lawrence H. Summers, . "How Does Macroeconomic Policy Matter?," J. Bradford De Long's Working Papers _130, University of California at Berkeley, Economics Department.
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