Carrera de Souza, Tomás
Reassessing sticky price models through the lens of scraped price data
[recurso electrónico] / Tomás Carrera de Souza
En: Ensayos Económicos [recurso electrónico]. -- no. 79 (mayo, 2022). -- Buenos Aires : Banco Central de la República Argentina, 2016

Incl. ref.
Incl. graf.
Modo de acceso: World Wide Web. PDF.
Descripción basada en la visualización del recurso el 16/7/2024
Disponible en: https://www.bcra.gob.ar/Institucional/DescargaPDF/DownloadPDF.aspx?Id=1054

What micro facts of price changes should be considered in the incorporation of price rigidities into macro models? To answer this, I exploit a novel micro data set obtained with web scraping techniques, containing daily prices of eight retailers from six countries with heterogeneous macroeconomic conditions. I find that: (1) There is a relation between the main statistics (related to the size and frequency of price adjustment) and the inflation rate of a country; (2) The distribution of the size of price changes has a relatively small, yet nontrivial mass around zero; (3) Familiar products from the same manufacturer have greater similarity in the timing and magnitude of price adjustment than heterogeneous products. I show that incorporating a three-dimensional cost –composed by a general cost, a product- specific cost, and a cost curtail for price changes in familiar products– makes an otherwise standard menu cost model reproduce these facts.
ISSN: 18506046

1. POLITICA MONETARIA; 2. WEB