The distributive trades, consisting of wholesaling and retailing, are a key sector of the economy. As the main interface between producers and consumers, the sector is particularly important from a monetary policy point of view: this is where most consumer goods prices are ultimately set. Despite almost 20 years of the Single Market, mark-ups in the distributive trades sector can still be substantial and differ considerably across countries, while cross-border trade remains limited. This report examines the structural features of the distributive trades sector which are likely to play an important role in determining price level and infl ation differences across countries.
Anderton, Robert and Meyler, Aidan and Gattini, Luca and Izquierdo, Mario and Jarvis, Valerie and Kaarup, Ri and Komzakova, Magdalena and Landau, Bettina and Mohr, Matthias F. and Page, Adrian and Sondermann, David and Vermeulen, Philip and Cornille, David and Tsalinski, Tsvetan Strahilov and Vladova, Zornitsa and Hartmann, Christin and Stahl, Harald and Linehan, Suzanne and Balfoussia, Hiona and Panagiotou, Stelios and Matea, María de los Llanos and Alvarez, Luis J. and Bardet-Fremann, Pierre-Michel and Berardi, Nicoletta and Sevestre, Patrick and Ciapanna, Emanuela and Rondinelli, Concetta and Kapatais, Demetris and Walch, Erik and Lunnemann, Patrick and Zerafa, Sandra and Pace, Christopher S. and Kieft, Jasper and Fritzer, Friedrich and Cardoso, Fatima Cristina and Gabrijelcic, Mateja and Karma, Branislav and Kivisto, Jarkko, Structural Features of Distributive Trades and Their Impact on Prices in the Euro Area (September 30, 2011). ECB Occasional Paper No. 128, Available at SSRN: https://ssrn.com/abstract=1791533