Price-Setting Behavior in Brazil: Survey Evidence

Price-Setting Behavior in Brazil: Survey Evidence Price surveys became popular after the seminal work of Blinder (Am Econ Rev 81(2):89–100, 1991) exploring US firms’ price-setting practices, which filled some blanks left by the simple observation of prices charged by firms. The present paper reports the findings from a survey conducted by the Central Bank of Brazil with local firms and discusses some policy implications. The sample consisted of 7002 firms and three economic sectors: manufacturing, services and commerce. Data suggest important features about price-setting behavior in Brazil: the cost of reviewing prices is low, but there is significant nominal rigidity—firms report to change prices approximately 3.6 times per year; state-dependent rules seem to be more frequent than time-dependent behavior; markup pricing appears to be the dominant strategy; and the two most important factors driving price changes in Brazil are the cost of intermediate goods and the inflation rate . http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Cycle Research Springer Journals

Price-Setting Behavior in Brazil: Survey Evidence

Download PDF
28 pages
Read Article

Loading next page...
 
/lp/springer_journal/price-setting-behavior-in-brazil-survey-evidence-8Z3SCcV01S
Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer International Publishing AG, part of Springer Nature
Subject
Economics; Macroeconomics/Monetary Economics//Financial Economics; Econometrics; Statistics for Business, Management, Economics, Finance, Insurance; Public Finance; Public Finance; Economic Growth
ISSN
2509-7962
eISSN
2509-7970
DOI
10.1007/s41549-018-0029-x
Publisher site
See Article on Publisher Site

Abstract

Price surveys became popular after the seminal work of Blinder (Am Econ Rev 81(2):89–100, 1991) exploring US firms’ price-setting practices, which filled some blanks left by the simple observation of prices charged by firms. The present paper reports the findings from a survey conducted by the Central Bank of Brazil with local firms and discusses some policy implications. The sample consisted of 7002 firms and three economic sectors: manufacturing, services and commerce. Data suggest important features about price-setting behavior in Brazil: the cost of reviewing prices is low, but there is significant nominal rigidity—firms report to change prices approximately 3.6 times per year; state-dependent rules seem to be more frequent than time-dependent behavior; markup pricing appears to be the dominant strategy; and the two most important factors driving price changes in Brazil are the cost of intermediate goods and the inflation rate .

Journal

Journal of Business Cycle Research – Springer Journals

Published: May 29, 2018

References

  • The dynamics of markups and inventories in retailing firms
    Aguirregabiria, M
  • Survey of price setting behaviour of Canadian companies
    Amirault, D; Kwan, C; Wilkinson, G
  • Optimal monetary policy responses to relative-price changes
    Aoki, K
  • Micro foundations of microeconomic price adjustment: Survey evidence from Swedish firms
    Apel, M; Friberg, R; Hellsten, K
  • Some evidence on the importance of sticky prices
    Bils, M; Klenow, P
  • Why are prices sticky? Preliminary results from an interview study
    Brinder, A
  • Asking about prices: A new approach to understanding price stickiness
    Blinder, A; Canetti, E; Lebow, D; Rudd, J
  • Macroeconomics rigidities and aggregate price dynamics
    Caballero, R; Engle, E
  • Staggered prices in a utility-maximizing framework
    Calvo, G
  • Heterogeneity in price stickiness and the real effects of monetary shocks
    Carvalho, C
  • Price changes in the euro area and the United States: Some facts from individual consumer price data
    Dhyne, E; Alvarez, L; Bihan, H; Veronese, G; Dias, D; Hoffman, J; Jonker, N; Lunnemann, P; Rumler, F; Vilmunen, J
  • What firms’ surveys tell us about price-setting behavior in the euro area
    Fabiani, S; Druant, M; Hernando, I; Kwapil, C; Landau, B; Loupias, C; Martins, F; Mathä, T; Sabbatini, R; Stahl, H; Stokman, A
  • Long-term contracts, rational expectations and the optimal money supply rule
    Fisher, S
  • A Phillips curve with Ss foundation
    Gertler, M; Leahy, J
  • Menu costs and Phillips curve
    Golosov, M; Lucas, R
  • State-dependent or time-dependent pricing: Does it matter for recent U.S. inflation?
    Klenow, P; Kryvtsov, O
  • Handbook of monetary economics 3A
    Klenow, P; Malin, B
  • The magnitude of menu costs: Direct evidence from large U. S. supermarket chain
    Levy, D; Bergen, M; Dutta, S; Venable, R
  • Sticky information versus sticky prices: A proposal to replace the new Keynesian Phillips curve
    Mankiw, G; Reis, R
  • Monetary channels in Brazil through the lens of a semi-structural model
    Minella, A; Souza-Sobrinho, N
  • Five facts about prices: A reevaluation of menu cost models
    Nakamura, E; Steinsson, J
  • Monetary non-neutrality in a multi-sector menu cost model
    Nakamura, E; Steinsson, J
  • Prices and quantities: A macroeconomics analysis
    Okun, A
  • Inattentive producers
    Reis, R
  • Optimal pricing with costly adjustment: Evidence from retail-grocery prices
    Slade, M
  • Inflation and costs of price adjustment
    Sheshinski, E; Weiss, Y
  • Aggregate dynamics and staggered contracts
    Taylor, J
  • Managerial and customer costs of price adjustment: Direct evidence from industrial markets
    Zbaracki, M; Riston, M; Levy, D; Dutta, S; Bergen, M

You’re reading a free preview. Subscribe to read the entire article.

Try 2 weeks free now

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

or browse the journals available

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off

Sign up
for free
Start 14 day
Free Trial