Sticky prices in the euro area: a summary of new micro evidence

Luis Alvarez, Philip Vermeulen, Harald Stahl, Roberto Sabbatini (), Fernando Martins, Patrick Lünnemann, Hervé Le Bihan, Claudia Kwapil, Marco Hoeberichts (), Emmanuel Dhyne and Jouko Vilmunen

No 563, Working Paper Series from European Central Bank

Abstract: This paper presents original evidence on price setting in the euro area at the individual level. We use micro data on consumer (CPI) and producer (PPI) prices, as well as survey information. Our main findings are: (i) prices in the euro area are sticky and more so than in the US; (ii) there is evidence of heterogeneity and of asymmetries in price setting behaviour; (iii) downward price rigidity is only slightly more marked than upward price rigidity and (iv) implicit or explicit contracts and coordination failure theories are important, whereas menu or information costs are judged much less relevant by firms. JEL Classification: C25, D40, E31

Keywords: consumer prices; price setting; price stickiness; producer prices; survey data (search for similar items in EconPapers)
Date: 2005-12
Note: 327651
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Citations: View citations in EconPapers (124)

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Related works:
Journal Article: Sticky Prices in the Euro Area: A Summary of New Micro-Evidence (2006)
Working Paper: Sticky Prices in The Euro Area: a Summary of New Micro Evidence (2006)
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2006)
Working Paper: Sticky prices in the euro area: a summary of new micro evidence (2005)
Working Paper: Sticky Prices in the Euro Area: A Summary of New Micro Evidence (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2005563

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