Price-setting policy determinants: micro-evidence from Brazil
Autor(a) principal: | |
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Data de Publicação: | 2010 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Economia Aplicada |
Texto Completo: | https://www.revistas.usp.br/ecoa/article/view/1043 |
Resumo: | The paper studies the frequency of price changes from a survey data on Brazilian companies. The data set has the advantage of including all of the economic sectors: agricultural and food products, trading, industry and services. Strong evidence of nominal price rigidities is found on the data with average and median price durations around 10.1 and 8.1 months, which is very close to results reported for the euro area and the United States. Using econometric modeling through an ordered probit and also an OLS regression, we find that price change duration is mostly explained by the wage duration, the degree of competition, product specialization, the elasticity of demand and economic sector dummies. The empirical results refute somewhat commonly used macroeconomic modeling for monetary policy evaluation; however they do not refute time-dependent models since those are consistent with different price durations across firms. These results shed light on some stylized facts that a macroeconomic price-setting model would need to reproduce. |
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Economia Aplicada |
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Price-setting policy determinants: micro-evidence from Brazilprice-settingfrequency of price changesnominal rigiditiessticky pricessurvey dataThe paper studies the frequency of price changes from a survey data on Brazilian companies. The data set has the advantage of including all of the economic sectors: agricultural and food products, trading, industry and services. Strong evidence of nominal price rigidities is found on the data with average and median price durations around 10.1 and 8.1 months, which is very close to results reported for the euro area and the United States. Using econometric modeling through an ordered probit and also an OLS regression, we find that price change duration is mostly explained by the wage duration, the degree of competition, product specialization, the elasticity of demand and economic sector dummies. The empirical results refute somewhat commonly used macroeconomic modeling for monetary policy evaluation; however they do not refute time-dependent models since those are consistent with different price durations across firms. These results shed light on some stylized facts that a macroeconomic price-setting model would need to reproduce.Universidade de São Paulo, FEA-RP/USP2010-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://www.revistas.usp.br/ecoa/article/view/104310.1590/S1413-80502010000200003Economia Aplicada; Vol. 14 No. 2 (2010); 169-182Economia Aplicada; Vol. 14 Núm. 2 (2010); 169-182Economia Aplicada; v. 14 n. 2 (2010); 169-1821980-53301413-8050reponame:Economia Aplicadainstname:Universidade de São Paulo (USP)instacron:USPenghttps://www.revistas.usp.br/ecoa/article/view/1043/1055Copyright (c) 2015 Economia Aplicadainfo:eu-repo/semantics/openAccessMoura, Marcelo L.Rossi Júnior, José Luiz2016-02-03T16:59:42Zoai:revistas.usp.br:article/1043Revistahttps://www.revistas.usp.br/ecoaPUBhttps://www.revistas.usp.br/ecoa/oai||revecap@usp.br1980-53301413-8050opendoar:2023-09-13T12:16:56.051507Economia Aplicada - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
Price-setting policy determinants: micro-evidence from Brazil |
title |
Price-setting policy determinants: micro-evidence from Brazil |
spellingShingle |
Price-setting policy determinants: micro-evidence from Brazil Moura, Marcelo L. price-setting frequency of price changes nominal rigidities sticky prices survey data |
title_short |
Price-setting policy determinants: micro-evidence from Brazil |
title_full |
Price-setting policy determinants: micro-evidence from Brazil |
title_fullStr |
Price-setting policy determinants: micro-evidence from Brazil |
title_full_unstemmed |
Price-setting policy determinants: micro-evidence from Brazil |
title_sort |
Price-setting policy determinants: micro-evidence from Brazil |
author |
Moura, Marcelo L. |
author_facet |
Moura, Marcelo L. Rossi Júnior, José Luiz |
author_role |
author |
author2 |
Rossi Júnior, José Luiz |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Moura, Marcelo L. Rossi Júnior, José Luiz |
dc.subject.por.fl_str_mv |
price-setting frequency of price changes nominal rigidities sticky prices survey data |
topic |
price-setting frequency of price changes nominal rigidities sticky prices survey data |
description |
The paper studies the frequency of price changes from a survey data on Brazilian companies. The data set has the advantage of including all of the economic sectors: agricultural and food products, trading, industry and services. Strong evidence of nominal price rigidities is found on the data with average and median price durations around 10.1 and 8.1 months, which is very close to results reported for the euro area and the United States. Using econometric modeling through an ordered probit and also an OLS regression, we find that price change duration is mostly explained by the wage duration, the degree of competition, product specialization, the elasticity of demand and economic sector dummies. The empirical results refute somewhat commonly used macroeconomic modeling for monetary policy evaluation; however they do not refute time-dependent models since those are consistent with different price durations across firms. These results shed light on some stylized facts that a macroeconomic price-setting model would need to reproduce. |
publishDate |
2010 |
dc.date.none.fl_str_mv |
2010-06-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://www.revistas.usp.br/ecoa/article/view/1043 10.1590/S1413-80502010000200003 |
url |
https://www.revistas.usp.br/ecoa/article/view/1043 |
identifier_str_mv |
10.1590/S1413-80502010000200003 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://www.revistas.usp.br/ecoa/article/view/1043/1055 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2015 Economia Aplicada info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2015 Economia Aplicada |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade de São Paulo, FEA-RP/USP |
publisher.none.fl_str_mv |
Universidade de São Paulo, FEA-RP/USP |
dc.source.none.fl_str_mv |
Economia Aplicada; Vol. 14 No. 2 (2010); 169-182 Economia Aplicada; Vol. 14 Núm. 2 (2010); 169-182 Economia Aplicada; v. 14 n. 2 (2010); 169-182 1980-5330 1413-8050 reponame:Economia Aplicada instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Economia Aplicada |
collection |
Economia Aplicada |
repository.name.fl_str_mv |
Economia Aplicada - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
||revecap@usp.br |
_version_ |
1800221694624792576 |