Arbeitspapier
Selection effects in producer-price setting
We use micro data on product prices linked to information on the firms that set them to test for selection effects (state dependence) in micro-level producer pricing. In contrast to using synthetic data from a canonical menu-cost model, we find very weak, if any, micro-level selection effects when running price change probability regressions on actual data. Moreover, when fitting a model that nests both time- and state-dependent elements (the CalvoPlus model of Nakamura and Steinsson, 2010) to the data, the resulting parameters mimic the standard Calvo (1983) model. Thus, upstream in the supply chain, price-setting is best characterized as time-dependent.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2014:6
- Classification
-
Wirtschaft
Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
- Subject
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Price-setting
Business Cycles
Micro Data
- Event
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Geistige Schöpfung
- (who)
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Carlsson, Mikael
- Event
-
Veröffentlichung
- (who)
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Uppsala University, Department of Economics
- (where)
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Uppsala
- (when)
-
2014
- Handle
- URN
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urn:nbn:se:uu:diva-230460
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Carlsson, Mikael
- Uppsala University, Department of Economics
Time of origin
- 2014
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