Aggregation and the Staggering of Price Changes

Dhyne, Emmanuël; KONIECZNY, Jerzy

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Aggregation and the Staggering of Price Changes

Dhyne, Emmanuël; KONIECZNY, Jerzy

2014 • In Economic Inquiry, 52 (2), p. 732-756

Peer reviewed

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https://hdl.handle.net/20.500.12907/3348

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Abstract :

[en] Temporal distribution of individual price changes is of crucial importance for business cycle theory and for the microfoundations of price adjustment. While it is routinely assumed that price changes are staggered over time, both theory and evidence are ambiguous. We use a large Belgian data set to analyze whether price changes are staggered or synchronized. We find that the more aggregated are the data, the closer is the distribution to perfect staggering. The results hold both for aggregation across products, and across locations. They are consistent with an economy in which idiosyncratic shocks are the main cause of price changes.

Disciplines :

Microeconomics

Author, co-author :

Dhyne, Emmanuël ; Université de Mons > Faculté Warocqué d'Economie et de Gestion > Analyse économique du travail

KONIECZNY, Jerzy

Language :

English

Title :

Aggregation and the Staggering of Price Changes

Publication date :

01 April 2014

Journal title :

Economic Inquiry

ISSN :

0095-2583

Publisher :

Wiley-Blackwell, Hoboken, United States - New Jersey

Volume :

Issue :

Pages :

732-756

Peer reviewed :

Peer reviewed

Research unit :

W718 - Analyse économique du travail

Research institute :

R250 - Institut de recherche pour le Développement sociétal et territorial

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since 17 March 2014

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