Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation

D. Foug re, Hervé Le Bihan and Patrick Sevestre
Authors registered in the RePEc Author Service: Denis Fougere

Working papers from Banque de France

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. To that end, 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 .ndings are the following: i) cross-product and cross-outlet-type heterogeneity in both the shape of the hazard function and the impact of covariates is pervasive 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: Sticky prices; Heterogeneity; Hazard function; Duration models. (search for similar items in EconPapers)
JEL-codes: C41 E31 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... g-paper_137_2005.pdf (application/pdf)

Related works:
Journal Article: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2007)
Working Paper: Heterogeneity in consumer price stickiness. A microeconometric investigation (2007)
Working Paper: Heterogeneity in consumer price stickiness. A microeconometric investigation (2007)
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2006)
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2005)
Working Paper: Heterogeneity in consumer price stickiness: a microeconometric investigation (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:bfr:banfra:137

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().