Price Setting in Retailing: the Case of Uruguay
We use a rich and unique dataset of 20 million daily prices in groceries and supermarkets across the country to analyze stylized facts of the behaviour of consumer prices. Our findings are as follows: i) The median duration of prices is little over 2 months. Therefore, retail prices in Uruguay are less sticky than in the US but stickier than in the UK. ii) We do not find evidence of a seasonal pattern in the likelihood of price adjustments. iii) The frequency of price adjustment varies positively with expected inflation for the food and personal care product categories. However, in the alcohol and soft drink categories we find that firms increase the percentage points of the adjustment and not its frequency. iv) The probability of price change in the first day of the month is seven times higher than in any another day. v) The probability of a price change is not constant over time.
|Date of creation:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo|
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
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.:
- Gastón Chaumont & Miguel Fuentes & Felipe Labbé & Alberto Naudon, 2011.
"A Reassessment of Flexible Price Evidence Using Scanner Data: Evidence from an Emerging Economy,"
Working Papers Central Bank of Chile
641, Central Bank of Chile.
- Gastón Chaumont & Miguel Fuentes & Felipe Labbé & Alberto Naudón, 2011. "A Reassesment of Flexible Price Evidence Using Scanner Data: Evidence from an Emerging Economy," Working Papers Central Bank of Chile 632, Central Bank of Chile.
- Emi Nakamura, 2008.
"Pass-Through in Retail and Wholesale,"
NBER Working Papers
13965, National Bureau of Economic Research, Inc.
- Ellis, Colin, 2009. "Do supermarket prices change from week to week?," Bank of England working papers 378, Bank of England.
- Fisher, Timothy C. G. & Konieczny, Jerzy D., 2000. "Synchronization of price changes by multiproduct firms: evidence from Canadian newspaper prices," Economics Letters, Elsevier, vol. 68(3), pages 271-277, September.
- Peter J. Klenow & Benjamin A. Malin, 2010.
"Microeconomic Evidence on Price-Setting,"
NBER Working Papers
15826, National Bureau of Economic Research, Inc.
- Alberto Cavallo, 2015. "Scraped Data and Sticky Prices," NBER Working Papers 21490, National Bureau of Economic Research, Inc.
- Gita Gopinath & Roberto Rigobon, 2008. "Sticky Borders," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 531-575.
- Emi Nakamura & Jón Steinsson, 2008. "Five Facts about Prices: A Reevaluation of Menu Cost Models," The Quarterly Journal of Economics, Oxford University Press, vol. 123(4), pages 1415-1464.
When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:0211. 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: (Irene Musio)or (Héctor Pastori)
If references are entirely missing, you can add them using this form.