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Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation

Denis Fougere (), Hervé Le Bihan () and Patrick Sevestre

No 5300, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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. For that purpose, 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 findings are the following: i) cross-product and cross-outlet-type heterogeneity is pervasive, both in the shape of the hazard function and in the impact of covariates; 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: duration models; hazard function; heterogeneity; sticky prices (search for similar items in EconPapers)
JEL-codes: C41 E31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-mic
Date: 2005-10
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Related works:
Journal Article: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2007) Downloads
Working Paper: Heterogeneity in consumer price stickiness. A microeconometric investigation (2007)
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2006) Downloads
Working Paper: Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation (2005) Downloads
Working Paper: Heterogeneity in consumer price stickiness: a microeconometric investigation (2005) Downloads
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