How Frequently Do Prices Change? Evidence Based on the Micro Data Underlying the Belgian CPI

Aucremanne, Luc; Dhyne, Emmanuël

doi:10.2139/ssrn.1691644

Cited by 219 publications

(127 citation statements)

References 47 publications

(12 reference statements)

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“…is conspicuous. This result for services was also found in the analysis of the Belgian micro CPI data by Aucremanne and Dhyne (2004a).…”

Section: Synchronisation Of Yearly Price Reviewssupporting

confidence: 79%

“…The specific wording of our time-dependent option "at specific time intervals" is probably closer to Taylor than to Calvo. Evidence on the existence of both time-dependent and state-dependent price-setting behaviour in the micro prices underlying the Belgian CPI has been found by Aucremanne and Dhyne (2004a) and ( Overall, this evidence sheds a different light on the macro-models used nowadays, as they generally assume time-dependent price adjustment. Wolman (1999) illustrat es the impact for the dynamics of inflation of the time-dependency hypothesis of Taylor (1980) and Calvo (1983) relative to the state-dependency of Dotsey, King and Wolman (1999).…”

Section: Time-dependent Versus State-dependent Price-setting Behaviourmentioning

confidence: 99%

“…As such, this survey is a complement to the recent quantitative analysis of price rigidities based on Belgian sectoral CPI data (see Aucremanne et al (2002)) and on Belgian micro CPI data (see Aucremanne and Dhyne (2004a) and (2004b)). …”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Price-Setting Behaviour in Belgium: What Can Be Learned from an Ad Hoc Survey ?

2005

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“…is conspicuous. This result for services was also found in the analysis of the Belgian micro CPI data by Aucremanne and Dhyne (2004a).…”

Section: Synchronisation Of Yearly Price Reviewssupporting

confidence: 79%

Section: Time-dependent Versus State-dependent Price-setting Behaviourmentioning

confidence: 99%

See 1 more Smart Citation

Price-Setting Behaviour in Belgium: What Can Be Learned from an Ad Hoc Survey ?

2005

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“…For instance, Aucremanne and Dhyne (2004), Baudry et al (2004), and Gouvea (2007) use a dataset covering 68, 65 and 85 % of the CPI respectively. Those studies using scraped data cover only a lower part of the official CPI basket, on the other hand.…”

Section: Price Spell Durationsmentioning

confidence: 99%

Price Rigidity in Turkey: Evidence from Micro Data

Ozmen¹,

Sevinc²

2015

Emerging Markets Finance and Trade

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In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy. JEL Classifications: C41; D40; E31; E50

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“…Golosov and Lucas (2003) suggest that firms change prices on average about every 2 quarters. Baudry et al (2004) find, however, a value of 3 quarters, while the analysis conducted in Aucremanne and Dhyne (2004) suggests 5 quarters.…”

Section: As Shown Inmentioning

confidence: 81%

Firm-Specific Investment, Sticky Prices, and the Taylor Principle

Sveen

Weinke²

2004

SSRN Journal

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According to the Taylor principle a central bank should adjust the nominal interest rate by more than one-for-one in response to changes in current inflation. Most of the existing literature supports the view that by following this simple recommendation a central bank can avoid being a source of unnecessary fluctuations in economic activity. The present paper shows that this conclusion is not robust with respect to the modelling of capital accumulation. We use our insights to discuss the desirability of alternative interest rate rules. Our results suggest a reinterpretation of monetary policy under Volcker and Greenspan: The empirically plausible characterization of monetary policy can explain the stabilization of macroeconomic outcomes observed in the early eighties for the US economy. The Taylor principle in itself cannot.

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How Frequently Do Prices Change? Evidence Based on the Micro Data Underlying the Belgian CPI

Cited by 219 publications

References 47 publications

Price-Setting Behaviour in Belgium: What Can Be Learned from an Ad Hoc Survey ?

Price-Setting Behaviour in Belgium: What Can Be Learned from an Ad Hoc Survey ?

Price Rigidity in Turkey: Evidence from Micro Data

Firm-Specific Investment, Sticky Prices, and the Taylor Principle

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