EconPapers    
Economics at your fingertips  
 

Intermittent Price Changes in Production Plants: Empirical Evidence using Monthly Data

Øivind Nilsen () and Magne Vange ()
Additional contact information
Magne Vange: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway

No 22/2016, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: The price-setting behaviour of manufacturing plants is examined using a large panel of monthly surveyed plant- and product-specific prices. The sample shows a high frequency of zero changes, relatively small price changes, and a strong seasonal price change pattern. The intermittent feature of price changes is modelled with thresholds which are lower in January, and a quadratic loss–function associated with the distance from target price. The findings show statistically significant pricing thresholds, which are only two thirds in January, and partial adjustment parameters implying that 60% of the deviation between the target price and current price is closed each month.

Keywords: Price Setting; Micro Data; Simulated Method of Moments (search for similar items in EconPapers)
JEL-codes: E30 E31 E37 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-12-23
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://brage.bibsys.no/xmlui/bitstream/handle/112 ... quence=1&isAllowed=y (application/pdf)

Related works:
Journal Article: Intermittent Price Changes in Production Plants: Empirical Evidence Using Monthly Data (2019) Downloads
Working Paper: Intermittent Price Changes in Production Plants: Empirical Evidence Using Monthly Data (2018) 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:hhs:nhheco:2016_022

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Karen Reed-Larsen ().

 
Page updated 2020-09-20
Handle: RePEc:hhs:nhheco:2016_022