University of St.Gallen
research platform alexandria
Publikationen durchsuchen
Publikationen filtern
nach Person
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 
nach Jahr

Price Variability and Price Dispersion in a Stable Monetary Environment: Evidence from Germany

Matthias Fengler & Joachim K. Winter

Volltext etc. Volltext nicht hinterlegt
Kurzfassung We investigate the relationship between inflation and price variation using highly disaggregated, weekly price data for consumption goods recorded in Germany during 1995, a low-inflation period. We find a significant positive correlation between the rates of price change and price dispersion, both at the level of individual products and product groups. However, we find no correlation between the rates of price change and price variability. Together with results from similar studies, Tommasi (1993. Optimal Pricing, Inflation, and the Cost of Price Adjustment. MIT Press: London, Cambridge, MA; 485–511) and Parsley (1996. J. Money Credit Banking28: 323–341), a remarkable pattern emerges: when aggregate nominal shocks are small, only price dispersion is correlated with price changes. As the rate of inflation rises, both variability and dispersion become affected. During hyper-inflation, systematic movements of price dispersion seem to disappear. We conclude that price dispersion is best explained by micro-economic frictions in price adjustment, whereas price variability appears to be related to costly price search and information problems.
   
Typ Artikel (wissenschaftliche Zeitschrift)
   
Schlagwörter (Tags) price stickiness, retail markets
   
Sprache Englisch
Art des Artikels Journal Artikel
Erscheinungsdatum 27-7-2007
Zeitschrift Managerial and Economic Decisions
Verlag John Wiley & Sons, Ltd.
ISSN 1099-1468
DOI 10.1002/mde.1373
Jahrgang bzw. Volume 28
Nummer bzw. Issue 7
Seite(n) 789-801
Review Double-Blind Review
   
Zitation Fengler, Matthias ; Winter, Joachim K.: Price Variability and Price Dispersion in a Stable Monetary Environment: Evidence from Germany. In: Managerial and Economic Decisions 28 (2007), Nr. 7, S. 789-801, DOI:10.1002/mde.1373.