Global versus local shocks in micro price dynamics
SourceJournal of International Economics
Google Scholar check
MetadataShow full item record
A number of recent papers point to the importance of distinguishing between the price reaction to macro and micro shocks. We emphasize instead the importance of distinguishing between global and local shocks. We exploit a panel of 276 micro price levels collected on a semi-annual frequency over two decades in 59 countries around the world, that enables us to distinguish between different types (. global and local) of macro and micro shocks. We find that global macro and micro shocks are always associated with a slower response of prices than the respective local shocks. Focusing on structural monetary macro shocks, we show that prices reach their long-run value much slower in response to a global macro shock, as compared to the time it takes for prices to reach their long-run value in response to a local macro shock. © 2015 Elsevier B.V.
Showing items related by title, author, creator and subject.
Clerides, Sofronis (2010)
Markopoulos, Panos M.; Ungar, Lyle H. (Affiliation: Computer and Information Sci. Dept., University of Pennsylvania, Pittsburgh, PA, United StatesCorrespondence Address: Markopoulos, P.M.Computer and Information Sci. Dept., University of Pennsylvania, Pittsburgh, PA, United Statesemail: email@example.com, 2001)Shopbots and Internet sites that help users locate the best price for a product are changing the way people shop by providing valuable information on goods and services. This paper presents a first attempt to measure the ...
Dimitriou, Loukas; Tsekeris, T.; Stathopoulos, Antony (2007)