Sticky Prices in the Euro Area: A Summary of New Micro-Evidence

Luis J. Alvarez, Emmanuel Dhyne, Marco Hoeberichts (), Claudia Kwapil, Hervé LE BIHAN (), Patrick Lünnemann, Fernando Manuel Monteiro Martins (), Roberto Sabbatini, Harald Edgar Stahl (), Philip Vermeulen () and Jouko Vilmunen

Journal of the European Economic Association, 2006, vol. 4, issue 2-3, pages 575-584

Abstract: This paper summarises the vast evidence on micro price-setting recently obtained for euro area countries. We consider studies with micro data on consumer and producer prices, as well as survey information. The main findings are: (1) prices in the euro area are sticky and stickier than in the US; (2) downward price rigidity is only slightly more marked than upward price rigidity; (3) heterogeneity and asymmetries are observed in price-setting; and (4) the relevance of theories that explain price stickiness, such as implicit or explicit contracts, marginal costs, and coordination failure, is confirmed, whereas menu costs, pricing thresholds, and costly information explanations are judged much less relevant by firms. (JEL: C25, D40, E31) (c) 2006 by the European Economic Association.

Date: 2006
View citations in EconPapers

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdfplus/10.1162/jeea.2006.4.2-3.575 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Sticky Prices in the Euro Area: A Summary of New Micro Evidence (2005)
Working Paper: Sticky Prices in the Euro Area: a Summary of New Micro Evidence (2005)
Working Paper: Sticky prices in the euro area - a summary of new micro evidence (2005)
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2006)
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:tpr:jeurec:v:4:y:2006:i:2-3:p:575-584

Ordering information: This journal article can be ordered from
http://www.mitpressjournals.org/jeea

Access Statistics for this article

Journal of the European Economic Association is edited by Xavier Vives, George-Marios Angeletos, Orazio P. Attanasio, Fabio Canova and Roberto Perotti

More articles in Journal of the European Economic Association from MIT Press
Series data maintained by Christopher F. Baum ().