Micro Foundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms
This paper reports the results from a survey on price-setting behavior of a large random sample of Swedish firms. Prices are found to adjust only infrequently; the median firm adjusts the price once a year. State-dependent pricing is found to be more common than is usually assumed and at least as important as time-dependent pricing. The paper sums up the evidence from this and two similar large-scale surveys on UK and US data. Notably, and suggesting directions for further research, four of the theories of price rigidity are ranked by the respondents among the top-five places in all three studies.
|Date of creation:||01 Dec 2001|
|Date of revision:|
|Publication status:||Published in Journal of Money, Credit and Banking, 2005, pages 313-338.|
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