Which Macroeconomic News Matters for Price-Setting?

Lukas Hack () and Davud Rostam-Afschar
Additional contact information
Lukas Hack: University of Mannheim

No 17935, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine how macroeconomic news affects firms’ extensive-margin price-setting plans in a survey that we rolled out with randomized daily invitations. These plans predict future realized inflation. Using a high-frequency event study framework, we find that inflation and employment surprises imply significant and sizable revisions in firms’ pricing plans. There is a limited role for news about the trade balance, but no significant role for other commonly studied data releases, e.g., industrial production. We also study news coverage and agents’ news search behavior, finding that the intensive-margin response of media coverage and news search may partly drive our main results.

Keywords: price-setting; firms; daily data; macroeconomic data releases (search for similar items in EconPapers)
JEL-codes: C83 E30 E31 E32 (search for similar items in EconPapers)
Date: 2025-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp17935.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:iza:izadps:dp17935

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().