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, Roberto Sabbatini, Fernando Manuel Monteiro Martins (), Harald Edgar Stahl (), Philip Vermeulen () and Jouko Vilmunen ()
Additional contact information
Emmanuel Dhyne: Banque Nationale de Belgique, Boulevard de Berlaimont 14, B - 1000 Brussels.
Claudia Kwapil: Oesterreichische Nationalbank, Otto Wagner Platz 3, A - 1011 Vienna., http://www.oenb.at
Patrick Lünnemann: Banque centrale du Luxembourg, 2 boulevard Royal, L - 2983 Luxembourg.
Roberto Sabbatini: Banca d'Italia, Via Nazionale 91, I - 00184 Rome., http://www.bancaditalia.it/

No 563, Working Paper Series from European Central Bank

Abstract: This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are -(i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and coordination failure theories are important, whereas menu or information costs are judged much less relevant by firms.

Keywords: Price setting; price stickiness; consumer prices; producer prices; survey data. (search for similar items in EconPapers)
JEL-codes: C25 D40 E31 (search for similar items in EconPapers)
Date: 2005-12
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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 (2006)
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2005)
Journal Article: Sticky Prices in the Euro Area: A Summary of New Micro-Evidence (2006)
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