Price Setting in Japan: Evidence from CPI Micro Data

Masahiro Higo · Yumi Saita

38 citations0/0 files storedRePEc: Research Papers in Economics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Monetary Policy and Economic Impact Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing

Abstract

This paper investigates the price-setting behavior in Japan by using the CPI micro data in the Retail Price Survey from 1989 to 2003. We establish the four facts as follows. First, the frequency of price changes for goods is high while that for services is low. The frequency of price changes for goods has increased during the 1990s while that for services has greatly decreased. Second, many items have a downward sloping hazard function while some have the flexible-type or the Taylor-type hazard function. Third, in most of the categories in the CPI, a decline in the frequency of price changes has contributed to the drop in the CPI inflation rate since the 1990s while the size of price changes has remained roughly unchanged. Fourth, the heterogeneity in the frequency of price changes acrosscategories and its evolution are strongly influenced by the differences in the share of labor costs in the production costs and changes in the firm's price strategy regarding temporary sales.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 38 citations exist upstream.

References

1983Staggered prices in a utility-maximizing framework 2008Five Facts about Prices: A Reevaluation of Menu Cost Models *2002Some Evidence on the Importance of Sticky Prices 2016Staggered Wage Setting in a Macro Model 2007Menu Costs and Phillips Curves 1999State-Dependent Pricing and the General Equilibrium Dynamics of Money and Output 1987Menu Costs and the Neutrality of Money 1999Asking about prices: a new approach to understanding price stickiness

Cited by

2008Some Evidence on the Adjustment of Producer Prices*2007Price Setting Behavior and Hazard Functions: Evidence from Japanese CPI Micro Data *2014Micro Price Dynamics during Japan's Lost Decades 2012Sectoral Comovement, Monetary Policy Shocks, and Input–Output Structure 2010Closely Competing Firms and Price Adjustment: Some Findings from an Online Marketplace*

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.