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Sticky prices in the euro area: a summary of new micro evidence

Luis Alvarez, Emmanuel Dhyne (), Marco Hoeberichts (), Claudia Kwapil (), Hervé Le Bihan (), Patrick Lünnemann (), Fernando Martins (), Roberto Sabbatini (), Harald Stahl (), Philip Vermeulen () and Jouko Vilmunen ()
Additional contact information
Claudia Kwapil: Oesterreichische Nationalbank
Patrick Lünnemann: Banque Centrale du Luxembourg

No 542, Working Papers from Banco de España, Working Papers Homepage

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
Note: Also published as ECB Working Paper Nº 563.
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Citations: View citations in EconPapers (19) Track citations by RSS feed

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/05/Fic/dt0542e.pdf First version, December 2005 (application/pdf)

Related works:
Journal Article: Sticky Prices in the Euro Area: A Summary of New Micro-Evidence (2006) Downloads
Working Paper: Sticky Prices in The Euro Area: a Summary of New Micro Evidence (2006) Downloads
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2006) Downloads
Working Paper: Sticky Prices in the Euro Area: A Summary of New Micro Evidence (2005) Downloads
Working Paper: Sticky Prices in the Euro Area: a Summary of New Micro Evidence (2005) Downloads
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2005) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0542

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