Formal Sector Price Discoveries: Results from a Developing Country
We present results of 1189 structured interviews about price-setting behavior of firms in the manufacturing and services sector in Pakistan. Our discoveries are that frequency of price change is considerably high, lowering the real impact of monetary policy. The remaining price stickiness is explained by firms caring about relative prices and the persistence of shocks. The exchange-rate and cost shocks are more important than financial and demand shocks for both setting prices and also the readiness with which these pass-through to the economy. Firms with connections with the informal sector, especially through demand, have a lower probability of price adjustment.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (01483) 259380
Fax: (01483) 259548
Web page: http://www.surrey.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Apel, Mikael & Friberg, Richard & Hallsten, Kerstin, 2005.
"Microfoundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 37(2), pages 313-38, April.
- Apel, Mikael & Friberg, Richard & Hallsten, Kerstin, 2001. "Micro Foundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms," Working Paper Series 128, Sveriges Riksbank (Central Bank of Sweden).
- Wasim Shahid Malik & Ahsan ul HaqSatti & Ghulam Saghir, 2010.
"Price Setting Behaviour of Pakistani Firms : Evidence from Four Industrial Cities of Punjab,"
Macroeconomics Working Papers
23069, East Asian Bureau of Economic Research.
- Wasim Shahid Malik & Ahsan ul Haq Satti & Ghulam Saghir, 2008. "Price Setting Behaviour of Pakistani Firms: Evidence from Four Industrial Cities of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(3), pages 247-266.
- Wasim Shahid Malik & Ahsan ul Haq Satti & Ghulam Saghir, 2010. "Price Setting Behaviour of Pakistani Firms: Evidence from Four Industrial Cities of Punjab," PIDE-Working Papers 2010:65, Pakistan Institute of Development Economics.
- Daniel Levy & Shantanu Dutta & Mark Bergen, 2004.
"Heterogeneity in Price Rigidity: Evidence from a Case Study Using Micro-Level Data,"
- Levy, Daniel & Dutta, Shantanu & Bergen, Mark, 2002. "Heterogeneity in Price Rigidity: Evidence from a Case Study Using Microlevel Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(1), pages 197-220, February.
- Daniel Levy & Shantanu Dutta & Mark Bergen, 2002. "Heterogeneity in Price Rigidity: Evidence from a Case Study Using Micro-Level Data," Working Papers 2002-09, Bar-Ilan University, Department of Economics.
- Arby, Muhammad Farooq & Malik, Muhammad Jahanzeb & Hanif, Muhammad Nadim, 2010.
"The size of informal economy in Pakistan,"
22617, University Library of Munich, Germany.
- Loupias, C. & Ricart, R., 2004.
"Price Setting in France: new Evidence from Survey Data,"
120, Banque de France.
- Loupias, Claire & Ricart, Roland, 2004. "Price setting in France: new evidence from survey data," Working Paper Series 0423, European Central Bank.
- Frankel, Jeffrey, 2011.
"Monetary Policy in Emerging Markets: A Survey,"
Working Paper Series
rwp11-003, Harvard University, John F. Kennedy School of Government.
- Cecchetti, Stephen G., 1986. "The frequency of price adjustment : A study of the newsstand prices of magazines," Journal of Econometrics, Elsevier, vol. 31(3), pages 255-274, April.
- Kwapil, Claudia & Baumgartner, Josef & Scharler, Johann, 2005.
"The price-setting behavior of Austrian firms: some survey evidence,"
Working Paper Series
0464, European Central Bank.
- Josef Baumgartner & Claudia Kwapil & Johann Scharler, 2005. "The Price-Setting Behavior of Austrian Firms: Some Survey Evidence," Working Papers 100, Oesterreichische Nationalbank (Austrian Central Bank).
- Asplund, Marcus & Eriksson, Rickard & Friberg, Richard, 1997.
"Price adjustments by a gasoline retail chain,"
SSE/EFI Working Paper Series in Economics and Finance
194, Stockholm School of Economics.
- Emi Nakamura & Jón Steinsson, 2008. "Five Facts about Prices: A Reevaluation of Menu Cost Models," The Quarterly Journal of Economics, MIT Press, vol. 123(4), pages 1415-1464, November.
- Fabiani, Silvia & Loupias, Claire & Martins, Fernando & Sabbatini, Roberto (ed.), 2007. "Pricing Decisions in the Euro Area: How Firms Set Prices and Why," OUP Catalogue, Oxford University Press, number 9780195309287.
- Sheshinski, Eytan & Weiss, Yoram, 1983. "Optimum Pricing Policy under Stochastic Inflation," Review of Economic Studies, Wiley Blackwell, vol. 50(3), pages 513-29, July.
When requesting a correction, please mention this item's handle: RePEc:sur:surrec:1011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alex Mandilaras)
If references are entirely missing, you can add them using this form.