A global assessment of the degree of price stickiness – results from the NBB business survey

Emmanuel Dhyne

No 171, Working Paper Research from National Bank of Belgium

Abstract: In this paper, we estimate the degree of price stickiness in Belgium using the NBB business survey. Compared to similar empirical exercises based on consumer or producer price data, the micro data set used allows us to cover most of the Belgian economy in one exercise and therefore provides a better estimate of the overall degree of price stickiness. Based on our estimates, 19.2% of prices are changed each month. In the manufacturing sector and the trade sectors, the frequency of price changes is close to 24.5%. In the construction sector the frequency of price changes is close to 20.5% and in the B2B service sectors it is almost 9%. Econometric analyses of the determinants of the sectoral frequency of price changes indicate, on the one hand, that the cost structure is the main explanatory variable of the sectoral discrepancies. On the other hand, we find that domestic competition does not seem to explain an excess or shortage of price changes at the sectoral level

Keywords: price rigidity; frequency of price changes; competition (search for similar items in EconPapers)
JEL-codes: D21 D40 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nbb.be/doc/ts/publications/wp/wp171en.pdf (application/pdf)

Related works:
Journal Article: A global assessment of the degree of price stickiness - results from the NBB Business survey (2009)
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:nbb:reswpp:200907-04

Access Statistics for this paper

More papers in Working Paper Research from National Bank of Belgium Contact information at EDIRC.
Bibliographic data for series maintained by (documentation@nbb.be).