The Price Setting Behavior in Colombia:Evidence from PPI Micro Data

In this paper we explore the price setting behavior of Colombian producers and importersusing a unique database containing the monthly price reports underlying the ColombianPPI from Jun-1999 to Oct-2006. We focus on five particular questions: 1. Are pricessticky or flexible? 2. Is a price increase more likely than a decrease? 3. Are price changessynchronized? 4. Is the pricing rule state or time dependent? 5. Are price changes sizable?Answers to these questions provide some of the micro fundamentals for the design ofmonetary policy in this country.

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Year of publication:	2008-01-31
Authors:	Julio, Juan Manuel ; Zárate, Héctor Manuel
Institutions:	BANCO DE LA REPÚBLICA
Subject:	Price Setting Behavior \| Nominal Price Rigidities \| Producers Price Index

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Series:	BORRADORES DE ECONOMIA.
Type of publication:	Book / Working Paper
Language:	English
Notes:	3 pages long
Classification:	E31 - Price Level; Inflation; Deflation ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E58 - Central Banks and Their Policies
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005597602