Sticky Prices in The Euro Area: a Summary of New Micro Evidence

Fernando Martins and Luis Alvarez
Authors registered in the RePEc Author Service: Philip Vermeulen, Roberto Sabbatini (), Emmanuel Dhyne, Harald Edgar Stahl, Marco Hoeberichts (), Jouko Vilmunen and Hervé LE BIHAN

Working Papers from Banco de Portugal, Economics and Research Department

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-codes: C25 D40 E31 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (230)

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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 (2005)
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:ptu:wpaper:w200605

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