Claudia Kwapil, Josef Baumgartner, and Johann Scharler
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780195309287
- eISBN:
- 9780199783939
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195309287.003.0004
- Subject:
- Economics and Finance, Econometrics
This chapter investigates price rigidity after cost and demand shocks in Austria. We find that the average time lag between a shock and the price adjustment is four to six months. Furthermore, firms' ...
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This chapter investigates price rigidity after cost and demand shocks in Austria. We find that the average time lag between a shock and the price adjustment is four to six months. Furthermore, firms' price reactions to cost and demand shocks are asymmetric: prices are stickier downward than upward in the face of cost shocks and the opposite is true in the case of major demand shocks. Finally, our results suggest that tight customer relationships increase price stickiness in response to demand shocks.Less
This chapter investigates price rigidity after cost and demand shocks in Austria. We find that the average time lag between a shock and the price adjustment is four to six months. Furthermore, firms' price reactions to cost and demand shocks are asymmetric: prices are stickier downward than upward in the face of cost shocks and the opposite is true in the case of major demand shocks. Finally, our results suggest that tight customer relationships increase price stickiness in response to demand shocks.
James M. Griffin and Steven L. Puller (eds)
- Published in print:
- 2005
- Published Online:
- February 2013
- ISBN:
- 9780226308562
- eISBN:
- 9780226308586
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226308586.001.0001
- Subject:
- Economics and Finance, Econometrics
The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by ...
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The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by producing electricity at lower costs and passing those cost savings on to customers. As this book shows, successful deregulation is possible, although it is by no means a hands-off process-in fact, it requires a substantial amount of design and regulatory oversight. This book brings together experts from academia, government, and big business to discuss the lessons learned from experiences such as California's market meltdown as well as the ill-conceived policy choices that contributed to those failures. More importantly, the book that comprise the book offer a number of innovative prescriptions for the successful design of deregulated electricity markets, and provide a deliberation on the many risks and rewards of electricity deregulation.Less
The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by producing electricity at lower costs and passing those cost savings on to customers. As this book shows, successful deregulation is possible, although it is by no means a hands-off process-in fact, it requires a substantial amount of design and regulatory oversight. This book brings together experts from academia, government, and big business to discuss the lessons learned from experiences such as California's market meltdown as well as the ill-conceived policy choices that contributed to those failures. More importantly, the book that comprise the book offer a number of innovative prescriptions for the successful design of deregulated electricity markets, and provide a deliberation on the many risks and rewards of electricity deregulation.
Jerry Hausman and Ephraim Leibtag (eds)
- Published in print:
- 2010
- Published Online:
- February 2013
- ISBN:
- 9780226148557
- eISBN:
- 9780226148571
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226148571.003.0006
- Subject:
- Economics and Finance, Econometrics
This chapter focuses on the fact that the Consumer Price Index (CPI) does not compare the prices charged for the same items at different outlets. It describes how the Bureau of Labor Statistics ...
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This chapter focuses on the fact that the Consumer Price Index (CPI) does not compare the prices charged for the same items at different outlets. It describes how the Bureau of Labor Statistics assumes that any price differences can be explained by differences in outlet characteristics valued by consumers, such as locational convenience or customer service. This may result in the failure to incorporate the gains to consumers from the continuing growth in sales at Wal-Mart and other low-price, high-volume superstores. The authors employ the A.C. Nielsen Homescan consumer panel data to identify the price differentials for twenty food product categories between supercenters, mass merchandisers, and club stores (SMCs) and other outlets. These differentials, combined with the SMCs' increasing market share, lead the authors to conclude that CPI food at home inflation is too high by about 0.32–0.42 percentage points annually.Less
This chapter focuses on the fact that the Consumer Price Index (CPI) does not compare the prices charged for the same items at different outlets. It describes how the Bureau of Labor Statistics assumes that any price differences can be explained by differences in outlet characteristics valued by consumers, such as locational convenience or customer service. This may result in the failure to incorporate the gains to consumers from the continuing growth in sales at Wal-Mart and other low-price, high-volume superstores. The authors employ the A.C. Nielsen Homescan consumer panel data to identify the price differentials for twenty food product categories between supercenters, mass merchandisers, and club stores (SMCs) and other outlets. These differentials, combined with the SMCs' increasing market share, lead the authors to conclude that CPI food at home inflation is too high by about 0.32–0.42 percentage points annually.
