Measuring price selection in microdata: It's not there

Arbeitspapier

We use microdata to estimate the strength of price selection - a key metric for the effect of monetary policy on the real economy. We propose a product-level proxy for mispricing and assess whether products with larger mispricing respond with a higher probability to identified monetary and credit shocks. We find that they do not, suggesting selection is absent. Instead, we detect state-dependent adjustment on the gross extensive margin. Our results are broadly consistent with second-generation state-dependent pricing models and sizable effects of monetary policy on the real economy.

Angaben zum Objekt

• ISBN: 978-92-899-4752-7
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2566

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Price Level; Inflation; Deflation ; Business Fluctuations; Cycles ; Monetary Policy
• Thema: monetary non-neutrality ; state-dependent pricing ; identified credit and monetary policy shocks ; price-gap proxy ; scanner data ; PPI microdata

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Karadi, Peter ; Schoenle, Raphael ; Wursten, Jesse
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2021

Weitere Informationen

• DOI: doi:10.2866/510642
• Handle: http://hdl.handle.net/10419/237705
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ