Arbeitspapier
Price selection
Price selection is a simple, model-free measure of selection in price setting and its contribu- tion to in ation dynamics. It exploits comovement between in ation and the level from which adjusting prices departed. Prices that increase from lower-than-usual levels tend to push in a- tion above average. Using detailed micro-level consumer price data for the United Kingdom, the United States, and Canada, we find robust evidence of strong price selection across goods and services. At a disaggregate level, price selection accounts for 37% of in ation variance in the United Kingdom, 36% in the United States, and 28% in Canada. Price selection is stronger for goods with less frequent price changes or with larger average price changes. Aggregate price selection is considerably weaker. A multisector sticky-price model accounts well for this evidence and demonstrates a monotone relationship between price selection and monetary non-neutrality.
- Sprache
-
Englisch
- Erschienen in
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Series: Texto para discussão ; No. 685
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Money Supply; Credit; Money Multipliers
- Thema
-
Consumer Price Index
Inflation
Prices
Selection Effect
Money Non-neutrality
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Viana de Carvalho, Carlos
Kryvtsov, Oleksiy
- Ereignis
-
Veröffentlichung
- (wer)
-
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
- (wo)
-
Rio de Janeiro
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
24.06.2025, 13:16 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Viana de Carvalho, Carlos
- Kryvtsov, Oleksiy
- Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
Entstanden
- 2021