Skip to Main content Skip to Navigation
New interface
Journal articles

Identifying Price Reviews by Firms: An Econometric Approach

Abstract : Price reviews are a potentially costly activity. A significant fraction of unchanged prices may stem from firms not reviewing prices, rather than from obstacles to changing prices per se, such as menu costs. In this paper, we disentangle these two causes of price stickiness by estimating an inflated ordered probit model on a panel of French manufacturing firms. The results point to a low frequency of price reviews, suggestive of the relevance of information costs as a determinant of the observed price stickiness. In view of the “inattentive producers” literature, pointing that the source of price rigidity matters, this is suggestive of a large real effect of monetary policy.
Document type :
Journal articles
Complete list of metadata

Cited literature [36 references]  Display  Hide  Download
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Tuesday, February 11, 2020 - 4:44:03 PM
Last modification on : Wednesday, November 3, 2021 - 9:46:48 AM
Long-term archiving on: : Tuesday, May 12, 2020 - 4:40:31 PM


Identifying Price Reviews by F...
Files produced by the author(s)




Mark Harris, Hervé Le Bihan, Patrick Sevestre. Identifying Price Reviews by Firms: An Econometric Approach. Journal of Money, Credit and Banking, 2020, 52 (2-3), pp.293-322. ⟨10.1111/jmcb.12675⟩. ⟨hal-02417497⟩



Record views


Files downloads