Pricing Decisions in the Euro Area: How Firms Set Prices and Why by Silvia FabianiPricing Decisions in the Euro Area: How Firms Set Prices and Why by Silvia Fabiani

Pricing Decisions in the Euro Area: How Firms Set Prices and Why

EditorSilvia Fabiani, Claire Suzanne Loupias, Fernando Manuel Monteiro Martins

Hardcover | December 19, 2007

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This book collects results from ad hoc surveys on firms pricing behavior conducted in 2003 and 2004 by nine National central banks of the Euro area in the context of a joint research project (Eurosystem Inflation Persistence Network). These surveys have proved to be an efficient way to testtheories on the pricing strategies of economic agents, documenting, in qualitative terms, the underlying rationale of the observed pricing patterns. The book provides an unprecedented amount of information from more than 11,000 euro area firms, addressing issues such as the relevance of nominal andreal rigidities, the information set used by firms in the price setting process, the strategy followed to review prices, the frequency of both price reviews and price changes, the reasons underlying price stickiness, and asymmetries in price adjustment. It also compares results for the euro area tothose obtained for other countries by similar studies. Finally, it draws the main implications for theoretical modeling and for monetary policy.
Silvia Fabiani is a senior economist at the Research Department of Banca d'Italia. Her recent research involves monitoring and forecasting the short-term developments of inflation in Italy and the euro area, styding long-term price dynamics and its determinants, and analyzing structural issues concerning price setting across countries ...
Title:Pricing Decisions in the Euro Area: How Firms Set Prices and WhyFormat:HardcoverDimensions:312 pages, 6.3 × 9.29 × 1.1 inPublished:December 19, 2007Publisher:Oxford University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0195309286

ISBN - 13:9780195309287


Table of Contents

Ignazio Angeloni: ForewordContributorsIntroductionPart I: Firms' Pricing Behavior in the Euro Area: An Overview1. Stephen G. Cecchetti, Fernando Martins, Roberto Sabbatini, and Harald Stahl: The Use of Survey Data to Investigate Price Setting: Theory and the Research Design for the Euro Area2. Silvia Fabiani, Claire Loupias, Martine Druant, Ignacio Hernando, Claudia Kwapil, Bettina Landau, Fernando Martins, Thomas Matha, Roberto Sabbatini, Harald Stahl, and Ad Stokman: Summary of Results for the Euro AreaPart II: Country-Specific Findings3. Claudia Kwapil, Josef Baumgartner, and Johann Scharler: Price Reactions to Demand and Cost Shocks: Survey Evidence from Austrian Firms4. Luc Aucremanne and Martine Druant: Why Are Prices Sticky? Evidence from an Ad Hoc Survey in Belgium5. Claire Loupias and Roland Ricart: Asymmetries in Price Setting: Some Evidence from French Survey Data6. Price Setting in German Manufacturing: Evidence from New Survey Data7. Silvia Fabiani, Angela Gattulli, and Roberto Sabbatini: The Pricing Behavior of Italian Firms: New Survey Evidence on Price Stickiness8. Patrick Lunnemann and Thomas Matha: A Survey of Price-Setting Practices of Luxembourg Firms9. Marco Hoeberichts and Ad Stockman: The Pricing Behavior of Dutch Firms: Survey Evidence on Price Stickiness10. Fernando Martins: How Portuguese Firms Set Their Prices: Evidence from Survey Data11. Luis J. Alvarez and Ignacio Hernando: The Pricing Behavior of Spanish FirmsPart III: Comparative Analysis12. Patrick Lunnemann and Thomas Matha: A Comparison Based on International Survey Evidence13. Luis J. Alvarez and Ignacio Hernando: Competition and Price Adjustment in the Euro Area14. Roberto Santini, Luis J. Alvarez, Emmanuel Dhyne, Marco Hoeberichts, Herv'e Le Bihan, Patrick Lunnemann, Fernando Martins, Fabio Rumler, Harald Stahl, Philop Vermeulen, Giovanni Veronese, and Jouko Vilmunen: What Quantitative Micro Data Reveal about Price Setting BehaviorPart IV: Concluding Remarks and Implications15. Vitor Gaspar, Andrew Levin, Fernando Martins, and Frank Smets: Policy Lessons and Directions for Ongoing ResearchAppendix: The National QuestionnairesIndex

Editorial Reviews

"More than 11,000 interviews of euro area firms and a thorough examination of individual micro data on consumer and producer prices allow the book to shed new light on price setting behavior. The extent and coverage of the project, the wealth of information contained in this book and therelevance of its results make its reading extremely rewarding for researchers and policy makers alike. The importance of mark-up pricing is confirmed and we learn that customer relations and coordination failures are more important for price reviews and actual changes than menu and informationprocessing costs." --Ignazio Visco, Deputy Director General of the Bank of Italy, former Chief Economist of the OECD