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008160923s2016    oncd    ob   f000 0 eng d
040 |aCaOODSP|beng
041 |aeng|bfre
043 |an-cn---
0861 |aFB3-5/2016-43E-PDF
1001 |aBenedict, Craig.
24510|aOn what states do prices depend? Answers from Ecuador |h[electronic resource] / |cby Craig Benedict, Mario J. Crucini and Anthony Landry.
260 |a[Ottawa] : |bBank of Canada, |cc2016.
300 |aii, 24 p. : |bgraphs.
4901 |aStaff Working Paper, |x1701-9397 ; |v2016-43
500 |a"September 2016."
504 |aIncludes bibliographical references.
5203 |a"In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers. An important facet of our analysis is that the labor-cost share of retail production differs across goods and services in the consumption basket. For example, the price of gasoline at the retail pump is predicted to adjust more frequently and by more than the price of a haircut because of the high volatility in wholesale gasoline prices relative to the wages of unskilled labor, even when both retailers face a common menu cost. This modeling approach allows us to account for some of the cross-sectional differences observed in the frequency of price adjustments across goods. We apply this model to Ecuador to takeadvantage of inflation variations and the rich panel of monthly retail prices"--Abstract.
546 |aText in English, abstract in English and French.
69207|2gccst|aPricing
69207|2gccst|aEconomic analysis
7001 |aCrucini, Mario J.|q(Mario John),|d1962-
7001 |aLandry, Anthony Emmanuel.
7102 |aBank of Canada.
830#0|aStaff working paper (Bank of Canada)|x1701-9397 ; |v2016-43|w(CaOODSP)9.806221
85640|qPDF|s636 KB|uhttps://publications.gc.ca/collections/collection_2016/banque-bank-canada/FB3-5-2016-43-eng.pdf