Stylised features of consumer price setting behaviour in Portugal: 1992-2001

Mónica Costa Dias, Daniel A. Dias*, Pedro Duarte Neves

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

6 Citations (Scopus)

Abstract

This paper identifies the empirical stylized features of consumer price setting behavior in Portugal using two micro-datasets underlying the consumer price index. The main conclusions are: one in every four prices change each month; there is a considerable degree of heterogeneity in price setting practices; prices of goods change more often than prices of services; price reductions are common, as they account to around 40% of total price changes; price changes are, in general, sizeable; finally, the price setting patterns seem to depend on the level of inflation as well as on the type of outlet.

Original languageEnglish
Pages (from-to)75-99
Number of pages25
JournalPortuguese Economic Journal
Volume7
Issue number2
DOIs
Publication statusPublished - 2008

Keywords

  • Consumer prices
  • Frequency of price changes
  • Price setting

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