Sticky prices in the euro area: a summary of new micro evidence

Arbeitspapier

This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are: (i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and coordination failure theories are important, whereas menu or information costs are judged much less relevant by firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series 1 ; No. 2006,02

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Market Structure, Pricing, and Design: General ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
• Subject: Price setting ; Price stickiness ; Consumer prices ; Producer prices ; survey data ; Preisrigidität ; Betriebliche Preispolitik ; Preisniveau ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Álvarez, Luis J. ; Dhyne, Emmanuel ; Hoeberichts, Marco ; Kwapil, Claudia ; Le Bihan, Hervé ; Lünnemann, Patrick ; Martins, Fernando ; Sabbatini, Roberto ; Stahl, Harald ; Vermeulen, Philip ; Vilmunen, Juoko
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/19630
• Last update: 10.03.2025, 11:42 AM CET