Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation

Denis Fougere (), Hervé LE BIHAN () and Patrick SEVESTRE

No 5300, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines heterogeneity in price stickiness using a large, original, set of individual price data collected at the retail level for the computation of the French CPI. For that purpose, we estimate at a very high level of disaggregation competing-risks duration models that distinguish between price increases, price decreases and product replacements. The main findings are the following: i) cross-product and cross-outlet-type heterogeneity is pervasive, both in the shape of the hazard function and in the impact of covariates; ii) at the product-outlet type level, the baseline hazard function of a price spell is non-decreasing; iii) there is strong evidence of state dependence, especially for price increases.

Keywords: duration models; hazard function; heterogeneity; sticky prices (search for similar items in EconPapers)
JEL-codes: C41 E31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-mic
Date: 2005-10
View list of references View citations in EconPapers

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP5300.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Heterogeneity in consumer price stickiness - a microeconometric investigation (2005)
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2006)
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2005)
Journal Article: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2007)
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:cpr:ceprdp:5300

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP5300.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().