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The New Keynesian model, augmented with the working capital channel, predicts that a rise in the policy rate causes firms that use more working capital to increase their prices more, and that the pass-through is gradual because of price rigidity. Using a unique dataset on firm-product-level...
Persistent link: https://www.econbiz.de/10014440752
inflation compared to industries with low-competition in the past few years. Further investigation shows that this …-competition have higher annual producer price inflation on average than those that are characterized with high-competition especially …
Persistent link: https://www.econbiz.de/10014547758
inflation compared to industries with low-competition in the past few years. Further investigation shows that this …-competition have higher annual producer price inflation on average than those that are characterized with high-competition especially …
Persistent link: https://www.econbiz.de/10014281528
Persistent link: https://www.econbiz.de/10012099728
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How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firm price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the elasticities...
Persistent link: https://www.econbiz.de/10011506815
How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firm price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the elasticities...
Persistent link: https://www.econbiz.de/10011584149
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