Micro Foundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms

Mikael Apel, Richard Friberg and Kerstin Hallsten ()

No 128, Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)

Abstract: This paper reports the results from a survey on price-setting behavior of a large random sample of Swedish firms. Prices are found to adjust only infrequently; the median firm adjusts the price once a year. State-dependent pricing is found to be more common than is usually assumed and at least as important as time-dependent pricing. The paper sums up the evidence from this and two similar large-scale surveys on UK and US data. Notably, and suggesting directions for further research, four of the theories of price rigidity are ranked by the respondents among the top-five places in all three studies.

Keywords: Nominal rigidity; Price-rigidity; Price-setting; Real rigidity; Time-dependent pricing; State-dependent pricing (search for similar items in EconPapers)
JEL-codes: D40 E30 L11 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2001-12-01
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Citations: View citations in EconPapers (51)

Published in Journal of Money, Credit and Banking, 2005, pages 313-338.

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http://www.riksbank.se/upload/Dokument_riksbank/Kat_foa/wp_128.pdf (application/pdf)

Related works:
Journal Article: Microfoundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:rbnkwp:0128

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