The Cyclicality of Sales, Regular and Effective Prices: Business Cycle and Policy Implications

Coibion, Olivier; Gorodnichenko, Yuriy; Hong, Gee Hee

doi:10.3386/w18273

“…3 Nakamura and Steinsson (2010) conclude that this interaction is not important in their calibrated menu-cost model. 4 Coibion et al (2014) provide evidence that sales are essentially acyclical -which is consistent with the models in Guimaraes and Sheedy (2011) and Kehoe and Midrigan (2014). Kryvtsov and Vincent (2014), on the other hand, argue that sales do not help reconcile micro and macro evidence on price rigidity.…”

Section: Introductionmentioning

confidence: 58%

“…Such ‡exibility is useful because it allows us to draw conclusions about price setting that do not depend on details of structural models that are not the focus of our analysis. 12 …”

Section: The Semi-structural Modelmentioning

confidence: 99%

Real Rigidities and the Cross-Sectional Distribution of Price Stickiness: Evidence from Micro and Macro Data Combined

Carvalho

¹

,

Dam

²

,

Lee

³

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Working Papers of Danmarks Nationalbank describe research and development, often still ongoing, as a contribution to the professional debate. Terms of use: Documents inThe viewpoints and conclusions stated are the responsibility of the individual contributors, and do not necessarily reflect the views of Danmarks Nationalbank.As a general rule, Working Papers are not translated, but are available in the original language used by the contributor. Danmarks Nationalbank's Working Papers are published in PDF format at www.nationalbanken.dk. A free electronic subscription is also available at this Web site.The subscriber receives an e-mail notification whenever a new Working Paper is published.Please direct any enquiries to Danmarks Nationalbank, Communications, Havnegade 5, DK-1093 Copenhagen K Denmark E-mail: kommunikation@nationalbanken.dkText may be copied from this publication provided that Danmarks Nationalbank is specifically stated as the source. Changes to or misrepresentation of the content are not permitted.Nationalbankens Working Papers beskriver forsknings-og udviklingsarbejde, ofte af foreløbig karakter, med henblik på at bidrage til en faglig debat.Synspunkter og konklusioner står for forfatternes regning og er derfor ikke nødvendigvis udtryk for Nationalbankens holdninger.Working Papers vil som regel ikke blive oversat, men vil kun foreligge på det sprog, forfatterne har brugt.Danmarks Nationalbanks Working Papers er tilgaengelige på www.nationalbanken.dk i pdf-format. På hjemmesiden er det muligt at oprette et gratis elektronisk abonnement, der leverer en e-mail notifikation ved enhver udgivelse af et Working Paper.Henvendelser kan rettes til: Danmarks Nationalbank, Kommunikation, Havnegade 5, 1093 København K. E-mail: kommunikation@nationalbanken.dk Det er tilladt at kopiere fra Nationalbankens Working Papers forudsat, at Danmarks Nationalbank udtrykkeligt anføres som kilde. Det er ikke tilladt at aendre eller forvanske indholdet. ISSN (online) 1602-1193 REAL RIGIDITIES AND THE CROSS-SECTIONAL DISTRIBUTION OF PRICE STICKINESS: EVIDENCE FROM MICRO AND MACRO DATA COMBINEDContact for this working paper: Niels Arne Dam Danmarks Nationalbank nad@nationalbanken.dk RESUME Vi opstiller en standard-model med stive priser, som kan belyse relevansen af tre mekanismer, der potentielt kan forlige de forholdsvis hyppige prisaendringer i mikroøkonomiske data med de store og langvarige effekter af monetaere stød, som findes i analyser af makroøkonomiske t...

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“…Rather, households increase time spent shopping and in home production to hold their food consumption broadly constant over retirement, in part due to the fall in their opportunity cost of time. Nevo and Wong (2014) and Coibion et al (2014) show that US households used similar mechanisms to cope with the Great Recession. In this paper we show that in response to unexpected worsening in the economic environment households acted to smooth two aspects of their consumption -total calories and their nutritional quality -by increasing their shopping effort and adjusting other aspects of consumption, namely the characteristics of their shopping basket.…”

Section: Discussionmentioning

confidence: 99%

“…We add to a growing body of literature on how households alter their shopping behaviour during economic downturns. Recent evidence from the US suggests that as economic conditions worsen households spend more time shopping and pay lower prices (Kaplan and Menzio (2014b)), increase their use of sales, switch to generic products (Nevo and Wong (2014)) and switch to low-price retailers (Coibion et al (2014)). …”

Section: Introductionmentioning

confidence: 99%

Shopping around: how households adjusted food spending over the Great Recession

Griffith

¹

,

O’Connell

²

,

Smith

³

2015

Working Paper Series

6

0

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractOver the Great Recession UK households reduced real food expenditure.We show that they were able to maintain the number of calories that they purchased, and the nutritional quality of these calories, by adjusting their shopping behaviour. We document the mechanisms that households used.We motivate our analysis with a model of shopping behaviour in which households adjust shopping effort and the characteristics of their shopping basket in response to economic shocks. We use detailed longitudinal data and focus on within household changes in basket characteristics and proxies for shopping effort.JEL classification: D12, I31

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“…Kehoe 4 Private label versions of a specific product share the same product code but have separate UICs and are thus recorded in Nielsen Scantrack data in the same way that a branded product sold by different retailers are. (2011) and Coibion et al (2013) address these issues. To account for this, recent empirical studies employing high-frequency price data seek to remove sales from price series.…”

Section: Constructing Reference Prices and Sales Pricesmentioning

confidence: 99%