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2000-06-01Buch DOI: 10.18452/3411
Price variability and price dispersion in a stable monetary environment
dc.contributor.authorFengler, Matthias R.
dc.contributor.authorWinter, Joachim K.
dc.date.accessioned2017-06-15T20:54:24Z
dc.date.available2017-06-15T20:54:24Z
dc.date.created2005-09-30
dc.date.issued2000-06-01
dc.identifier.issn1436-1086
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4063
dc.description.abstractWe investigate the relationship between inflation and price variation using highly disaggregated, weekly price data for consumption goods recorded in Germany during 1995, a low inflation period. We find a significant positive correlation between the rates of price change and price dispersion, both at the level of individual products and product groups. However, we find no correlation between the rates of price change and price variability. Together with results from similar studies, Tommasi (1993) and Parsley (1996), a remarkable pattern emerges: When aggregate nominal shocks are small, only price dispersion is correlated with price changes. As the rate of inflation rises, both variability and dispersion become affected. During hyperinflation, systematic movements of price dispersion seem to disappear. We conclude that price dispersion is best explained by microeconomic frictions in price adjustment, whereas price variability appears to be related to costly price search and information problems.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectprice dispersioneng
dc.subjectprice variabilityeng
dc.subjectinflationeng
dc.subject.ddc330 Wirtschaft
dc.titlePrice variability and price dispersion in a stable monetary environment
dc.typebook
dc.subtitleEvidence from German retail markets
dc.identifier.urnurn:nbn:de:kobv:11-10048165
dc.identifier.doihttp://dx.doi.org/10.18452/3411
local.edoc.container-titleSonderforschungsbereich 373: Quantification and Simulation of Economic Processes
local.edoc.pages22
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2000
local.edoc.container-issue90
local.edoc.container-year2000
local.edoc.container-erstkatid2135319-0

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