Journal article
Asymmetric price adjustment in the small
Journal of monetary economics, Vol.55(4), pp.728-737
05/01/2008
DOI: 10.1016/j.jmoneco.2008.05.002
Abstract
Analyses of a large retail scanner price data set reveal a new and surprising regularity small price increases occur more frequently than small price decreases for price changes of up to 10 0. That is, we find asymmetric price adjustment "in the small." Furthermore, it turns out that inflation offers only a partial explanation for the finding. Indeed, substantial proportion of the asymmetry remains unexplained, even after accounting for the inflation. For example, the asymmetry holds also after excluding periods of inflation from the data, and even for products whose price had not increased. The findings hold for different aggregate and disaggregate measures of inflation and also after allowing for lagged price adjustments. (c) 2008 Elsevier B.V. All rights reserved.
Details
- Title: Subtitle
- Asymmetric price adjustment in the small
- Creators
- Haipeng (Allan) Chen - Texas A&M UniversityDaniel Levy - Bar-Ilan UniversitySourav Ray - McMaster UniversityMark Bergen - University of Minnesota
- Resource Type
- Journal article
- Publication Details
- Journal of monetary economics, Vol.55(4), pp.728-737
- DOI
- 10.1016/j.jmoneco.2008.05.002
- ISSN
- 0304-3932
- eISSN
- 1873-1295
- Publisher
- Elsevier
- Number of pages
- 10
- Language
- English
- Date published
- 05/01/2008
- Academic Unit
- Marketing
- Record Identifier
- 9984618639202771
Metrics
21 Record Views