Consumer Price Behaviour in Italy: Evidence from Micro CPI Data

By Giovanni Veronese, S. Fabiani, A. Gattulli, R. Sabbatini. Social Science Research Network, 2005

127 citations recorded by the source corpus.

This paper investigates the behaviour of consumer prices in Italy by looking at micro data in the attempt to obtain a quantitative measure of the unconditional degree of price rigidity in the Italian economy. The analysis focuses on the monthly frequency of price changes and on the duration of price spells, also with reference to different types of products and outlets. Prices tend to remain unchanged on average for around 10 months; duration is longer for nonenergy industrial goods and services and much shorter for energy products. Price changes are more frequent upward than downward, in larger stores than in traditional ones. When the geographical location of outlets is accounted for, price changes display considerable synchronisation, in particular in the service sector. JEL Classification: D21, D40, E31

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/b44e03c8f280ceca18e10b817b70a34b0624a40f

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In Economics and Econometrics

Citations in the corpus

Sticky Prices in the Euro Area: A Summary of New Micro Evidence (2006, unknown): “…et al. (2005) 3 Authors’ calculations based on Fabiani et al. (2005) 10 See Baudry et al. (2004), Dias et al. (2004), Jonker et al. (2004) and Veronese et al. (2005) Finally, survey evidence points out that prices of services other than trade are stickier than those for manufacturing goods…”
Has the Inflation Process Changed (2006, background): “To better match the aggregate inflation persistence that they find in the US data, Fuhrer and Moore (1995) develop a model of overlapping contracts based on Buiter and Jewitt (1981) where workers care about relative real wages; that is, the current wage is set relative to past and expected future wa”
How Frequently Do Consumer Prices Change in Austria? Evidence from Micro CPI Data (2005, unknown): “16 A remarkably similar picture can be found in Fabiani et al. (2004). 17 Note also the different scales in Figure 5.”
Time-Dependent Versus State-Dependent Pricing: A Panel Data Approach to the Determinants of Belgian Consumer Price Changes (2005, unknown): “2 For empirical evidence on this issue, see for instance Álvarez et al. (2004), Campbell and Eden (2004), Veronese et al. (2004), Fougère et al. (2004), Jonker et al. (2004).”
Consumer Price Adjustment Under the Microscope: Germany in a Period of Low Inflation (2006, unknown): “This paper supplements studies on consumer price dynamics in Austria (Baumgartner et al 2005), Belgium (Aucremanne/ Dhyne 2004, 2005), in Finland (Vilmunen/Laakkonen, 2005), in France (Baudry et al 2004, Fougère et al 2005), in the Netherlands (Jonker et al 2004), in Italy (Veronese et al 2005), in ”
Lumpy Price Adjustments: A Microeconometric Analysis (2011, unknown): “"Price Setting in the Euro Area: Some Stylised Facts From Individual Producer Price Data", ECB Working Paper Series, 727 [47] Veronese, Giovanni, Silvia Fabiani, Angela.”