Price-setting behaviour in New Zealand

Miles Parker

No DP2014/04, Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand

Abstract: New evidence from a large survey of over 5300 firms provides insight into price-setting behaviour in New Zealand. There is considerable heterogeneity in behaviour both between and within sectors, and marked asymmetry in the responses to shocks. The median number of prices reviews is twice per year, but the median number of changes is just once. Multi-product firms reset prices more frequently, even accounting for other firm characteristics. Explicit and implicit contracts and strategic complementarity are the most widely recognised causes of price stickness. Menu costs and sticky information are not widely recognised.

JEL-codes: D40 E30 (search for similar items in EconPapers)
Pages: 50 p.
Date: 2014-07
New Economics Papers: this item is included in nep-bec, nep-com, nep-hme and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Related works:
Journal Article: Price-setting behaviour in New Zealand (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbdps:2014/04

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