The Price Setting Behavior in Colombia: Evidence from PPI Micro Data

Juan Julio and Hector Zarate-Solano

Borradores de Economia from Banco de la Republica de Colombia

Abstract: In this paper we explore the price setting behavior of Colombian producers and importers using a unique database containing the monthly price reports underlying the Colombian PPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are prices sticky or flexible? 2. Is a price increase more likely than a decrease? 3. Are price changes synchronized? 4. Is the pricing rule state or time dependent? 5. Are price changes sizable? Answers to these questions provide some of the micro fundamentals for the design of monetary policy in this country.

Keywords: Price Setting Behavior; Nominal Price Rigidities; Producers Price Index. (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2008-02
New Economics Papers: this item is included in nep-cba, nep-lam and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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https://doi.org/10.32468/be.483 (application/pdf)

Related works:
Journal Article: The Price Setting Behavior in Colombia: Evidence from PPI Micro Data (2008)
Journal Article: The Price Setting Behavior in Colombia: evidence from PPI micro data (2008)
Working Paper: The Price Setting Behavior in Colombia:Evidence from PPI Micro Data (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:483

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