A Sticky-Price View of Hoarding

66 Pages Posted: 8 May 2020 Last revised: 22 Sep 2021

See all articles by Aureo de Paula

Aureo de Paula

University College London - Department of Economics

Christopher Hansman

Imperial College Business School

Harrison G. Hong

Columbia University, Graduate School of Arts and Sciences, Department of Economics; National Bureau of Economic Research (NBER)

Vishal Singh

New York University (NYU) - Department of Marketing

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Date Written: April 2020

Abstract

precautionary motives for hoarding. Using detailed US supermarket scanner data covering the 2008 global rice crisis-a shock triggered by an Indian rice export ban-we find that household hoarding anticipated retail price adjustments. We construct forecast tests relating the cross-section of product or store-level price adjustments to the expectations implied by consumer purchases. Bias and efficiency tests reject panic/precautionary motives in favor of a sticky price view.

Suggested Citation

de Paula, Aureo and Hansman, Christopher and Hong, Harrison G. and Singh, Vishal, A Sticky-Price View of Hoarding (April 2020). CEPR Discussion Paper No. DP14633, Available at SSRN: https://ssrn.com/abstract=3594264

Aureo De Paula (Contact Author)

University College London - Department of Economics ( email )

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Christopher Hansman

Imperial College Business School ( email )

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Harrison G. Hong

Columbia University, Graduate School of Arts and Sciences, Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Vishal Singh

New York University (NYU) - Department of Marketing ( email )

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New York, NY
United States

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