Time-dependent or state-dependent pricing? Evidence from a large devaluation episode
| Data(s) |
25/03/2015
25/03/2015
25/03/2015
|
|---|---|
| Resumo |
State-dependent and time-dependent price setting models yield distinct implications for how frequency and magnitude of price changes react to shocks. This note studies pricing behavior in Brazil following the large devaluation of the Brazilian Real in 1999 to distinguish between models. The results are consistent with state-dependent pricing |
| Identificador |
TD 382 |
| Idioma(s) |
en_US |
| Relação |
EESP- Textos para Discussão;TD 382 |
| Palavras-Chave | #state-dependent pricing, time-dependent pricing, currency devaluation, frequency of price changes |
| Tipo |
Report |
