Price-Setting Behaviour in Switzerland: Evidence from CPI Micro Data

Daniel Kaufmann ()

Swiss Journal of Economics and Statistics (SJES), 2009, vol. 145, issue III, pages 293-349

Abstract: This paper investigates the price setting behaviour of firms based on the individual price quotes underlying the Swiss consumer price index. The data set covers the years from 1993 to 2005. Six main findings emerge from the analysis. (i) Prices are sticky. (ii) The price setting behavior is heterogeneous across sectors and outlet characteristics. (iii) Price changes are sizeable. (iv) There is no indication of general downward price stickiness. (v) Firms respond to expected cost shocks at the date of their occurrence. (vi) There is some evidence that firms adjust their behaviour according to the state of the economy.

Keywords: CPI data; price-setting; frequency of price changes; nominal price rigidity; time-dependent pricing; state-dependent pricing (search for similar items in EconPapers)
JEL-codes: E31 D40 (search for similar items in EconPapers)
Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:ses:arsjes:2009-iii-3

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