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

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 state …-dependent price adjustment. Most importantly, the differences in quot;unconditionalquot; sectoral price flexibility are found to be …

beliefs, generating positive price-quantity comovement. The feedback of beliefs into prices can be so strong that even …

the link between external rebalancing and relative price adjustment. We find that neglect of inputs distorts … price through several opposing channels. (1) Mismeasured imported inputs exaggerate economic openness and understate the … price response to rebalancing. (2) Mismeasured domestic inputs increase cross-sectoral asymmetry in openness, leading to an …

The paper analyzes the problems of measurement of durable consumer prices posed by quality change. Theoretical price … indexes are defined and used to analyze several empirical methods of estimation of quality adjusted price indexes. The paper … provide reliable price estimators. The analysis suggests that the application of methods of measurement based on chain indexes …

, supply and inventory shocks. We document how gas price fluctuations have a heterogeneous pass-through to euro area prices …

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 …

In this paper we show that higher flexibility, measured by lower wage and price mark-ups leads to reduced inflationary …-Country Model are used to understand plausible dynamics of labour cost and price adjustments. In the rational expectation version of …