price changes are decreasing. This means that a firm will have a lower probability of changing its price the longer it has … kept it unchanged. This result is at odds with standard models of price setting. Here a simple explanation is proposed …: decreasing hazards may result from aggregating heterogeneous price setters. We show analytically the form of this heterogeneity …

ation period covered by our sample is mostly due to price changes in supermarkets and hypermarkets. …

How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … different sources of micro and macro price data for Germany and the euro area. For Germany, we find that quality adjustment … applies to a large range of goods and services but, on average, price adjustments due to quality changes reduce headline …

We analyse the adjustment of retail and services prices in a period of low inflation, using a set of individual price … data from the German Consumer Price Index that covers the years 1998 to 2003. We strong find evidence of time- and … statedependent price adjustment. Most importantly, the differences in "unconditional" sectoral price flexibility are found to be …

(WDN) on patterns of firm-level adjustment to shocks. We document that the relative intensity and the character of price vs …