The Price Setting Behavior in Colombia:Evidence from PPI Micro Data

Juan Julio and Héctor Manuel Zárate ()

No 4511, Borradores de Economia from Banco de la Republica

Abstract: In this paper we explore the price setting behavior of Colombian producers and importersusing a unique database containing the monthly price reports underlying the ColombianPPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are pricessticky or flexible? 2. Is a price increase more likely than a decrease? 3. Are price changessynchronized? 4. Is the pricing rule state or time dependent? 5. Are price changes sizable?Answers to these questions provide some of the micro fundamentals for the design ofmonetary policy in this country.

Keywords: Price Setting Behavior; Nominal Price Rigidities; Producers Price Index (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Pages: 39
Date: 2008-01-31
New Economics Papers: this item is included in nep-cba, nep-lam and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.banrep.gov.co/docum/ftp/borra483.pdf

Related works:
Journal Article: The Price Setting Behavior in Colombia: Evidence from PPI Micro Data (2008)
Journal Article: The Price Setting Behavior in Colombia: evidence from PPI micro data (2008)
Working Paper: The Price Setting Behavior in Colombia: Evidence from PPI Micro Data (2008)
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:col:000094:004511

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica
Bibliographic data for series maintained by Clorith Angelica Bahos Olivera ().