EconPapers    
Economics at your fingertips  
 

Demand or Supply? Price Adjustment during the Covid-19 Pandemic

Almut Balleer, Sebastian Link, Manuel Menkhoff, Peter Zorn () and Manuel Menkhoff
Authors registered in the RePEc Author Service: Manuel Menkhoff

No 8394, CESifo Working Paper Series from CESifo

Abstract: We study price-setting behavior in German firm-level survey data to infer the relative importance of supply and demand during the Covid-19 pandemic. Supply and demand forces coexist, but demand shortages dominate in the short run. A reported negative impact of Covid-19 on current business is associated with a rise in the probability to decrease prices up to eleven percentage points. These results imply a role for aggregate demand stabilization policy to buffer the economic consequences of Covid-19 while containing the pandemic.

Keywords: producer price setting; supply; demand; Covid-19; fiscal policy (search for similar items in EconPapers)
JEL-codes: E31 E32 H50 E60 D22 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp8394.pdf (application/pdf)

Related works:
Working Paper: Demand or Supply? Price Adjustment during the Covid-19 Pandemic (2020) Downloads
Working Paper: Demand or Supply? Price Adjustment during the COVID-19 Pandemic (2020) Downloads
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:ces:ceswps:_8394

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2021-04-12
Handle: RePEc:ces:ceswps:_8394