Price setting in German manufacturing: new evidence from new survey data

Harald Stahl

No 2005,43, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank

Abstract: This paper presents new evidence on the formation of producer prices based on a onetime survey that was conducted on a sample of 1200 German firms in manufacturing in June 2004. Most of the firms have price-setting power and apply mark-up pricing. Indexation is negligible. Fixed nominal contracts are the most important reason for postponing a price adjustment. The second most likely reason is coordination failure, which causes more upward than downward stickiness. For every second firm both reasons are important. Firms can be assigned to four different groups according to an increasing complexity of reasons of price stickiness.

Keywords: Price rigidity; cluster analysis (search for similar items in EconPapers)
JEL-codes: D40 E30 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-ind, nep-mac and nep-mic
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Citations: View citations in EconPapers (51)

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Working Paper: Price setting in German manufacturing: new evidence from new survey data (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:4237

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