Consumer price behaviour: evidence from Luxembourg micro data

Patrick Lünnemann and Thomas Mathä
Additional contact information
Patrick Lünnemann: Banque centrale du Luxembourg, Economics and Research Department, 2, boulevard Royal, L-2983 Luxembourg, Postal: Banque centrale du Luxembourg, Economics and Research Department, 2, boulevard Royal, L-2983 Luxembourg

Managerial and Decision Economics, 2010, vol. 31, issue 2-3, 177-192

Abstract: We analyse micro-level consumer price data in Luxembourg with a particular view on price change reversals and wage indexation. The median duration is roughly 8 months. On an average, price decreases are as large as price increases. With the exception of services, individual prices do not show signs of downward rigidity. Excluding price change reversals reduces the weighted frequency of price change from 17 to 12%. Accumulated price and wage inflation, automatic wage indexation, and the cash changeover increase the probability of a price change, whereas pricing at attractive pricing points and price regulation have the opposite effect. Copyright © 2010 John Wiley & Sons, Ltd.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1490 Link to full text; subscription required (text/html)

Related works:
Working Paper: Consumer price behaviour in Luxembourg: evidence from micro CPI data (2005)
Working Paper: Consumer price behaviour in Luxembourg: evidence from micro CPI data (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: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:31:y:2010:i:2-3:p:177-192

DOI: 10.1002/mde.1490

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().