Heterogeneity in consumer price stickiness: a microeconometric investigation

Patrick Sevestre, Hervé Le Bihan and Denis Fougere

No 536, Working Paper Series from European Central Bank

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 findings 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. JEL Classification: E31, C41

Keywords: duration models; hazard function; heterogeneity; sticky prices (search for similar items in EconPapers)
Date: 2005-10
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Citations: View citations in EconPapers (40)

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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)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2005536

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