Price Adjustment in German Manufacturing: Evidence from Two Merged Survey

108 Pages Posted: 8 Jun 2016

See all articles by Harald Stahl

Harald Stahl

Deutsche Bundesbank - Economics Department

Date Written: 2006

Abstract

This paper presents new evidence on the formation of producer prices. The database combines a one-time survey that was conducted in June 2004 on a sample of 1,200 firms in manufacturing and time-series information on price adjustment of the same firms from a business-tendency survey. The share of time-dependent price setters amounts to 20 per cent. Neither Taylor nor Calvo type price setting describes their price adjustment well. Only a few firms are forward-looking, the majority relies on contemporaneous and past information.

Keywords: Price rigidity, sticky information, survey data

JEL Classification: E30, D40

Suggested Citation

Stahl, Harald, Price Adjustment in German Manufacturing: Evidence from Two Merged Survey (2006). Bundesbank Series 1 Discussion Paper No. 2006,46. Available at SSRN: https://ssrn.com/abstract=2785273

Harald Stahl (Contact Author)

Deutsche Bundesbank - Economics Department ( email )

Wilhelm-Epstein-Strasse 14
60431 Frankfurt am Main
Germany

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