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
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

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Viana de Carvalho, Carlos
  • Kryvtsov, Oleksiy
  • Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia

Entstanden

  • 2021

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