Price response,information, and asymmetry of price dispersion

In this study, we examine how differently gasoline prices in 25 regions of Seoul, Korea respond to asymmetric information between retailers and consumers. We estimate the region-specific likelihood that retailers engage in price undercutting under asymmetric information and investigate inter-regional differences. We find that in response to increases in wholesale price, regions with a high likelihood of price undercutting experience intensified gas station price competition while dispersions of price and markups tend to decrease more in response to cost shocks. Understanding the geographical dispersion of retailers’ price responses to information frictions and search intensity is crucial to lowering information barriers across regions and redistributing profit among market participants.     

Public sector price controls and electoral cycles

Public enterprise prices are important policy instruments in developing economies. This is why public sector price polices constitute a key element of stabilization programmes implemented in these economies. However, this significance is not specific to stabilization episodes. First, this study questions whether an opportunistic politician can manipulate public prices to win elections. It analyses the impact of such price controls on budget deficits and the repercussions of alternative financing mechanisms of these deficits on the inflation rate and voters’ behaviour. It is shown that electoral inflation cycles are obtained under domestic debt financing, whereas money financing does not permit such a manipulative policy. Second, by focusing on data of the Turkish economy for the 1987(1)–2003(12) period, empirical evidence for such manipulative policies is given.     

Replacement cycles,income distribution and dynamic price discrimination

This article analyses how income distribution, Intellectual Property Rights and other regulatory policies such as minimum quality standards determine pricing strategies in a dynamic context where a monopolist periodically introduces new generations or upgrades of a durable good. Discrimination through quality and screening in this article takes place in a context where consumers buy several versions of the durable good during their lifetime, instead of a single version as in Inderst’s (2008) or Koh’s (2006). It also differs from Glass (2001) in that an equilibrium may emerge in which different consumer types replace their durable generations with different frequencies. Our modelling is motivated by stylized facts from the last Brazilian POF (household budget survey).     

International business cycles and the relative price of investment goods

Abstract Is the relative price of investment goods a good proxy for investment specific technology? We model this relative price in a flexible price international economy with two fundamental shocks, namely, the total factor productivity (TFP) shock and the investment‐specific technology (IST) shock. We show that the one‐to‐one correspondence between the IST shock and the relative price of investment goods breaks down in an international economy because of the short‐run correlation between the terms of trade and the relative price of investment goods. The data congruent negative correlation between the investment rate and the relative price of investment goods thus does not necessarily reflect decline in investment frictions (rise in IST), as suggested by many studies. A calibration experiment with the US data demonstrates that such an inverse relation between rate of investment and the relative price of investment goods basically reflects the positive effect of TFP on the terms of trade for a broad range of economies where the home bias in consumption exceeds investment and there is a sizable adjustment cost of investment.     

Commodity price cycles and heterogeneous speculators: a STAR–GARCH model

We propose an empirical commodity market model with heterogeneous speculators. While the power of trend-extrapolating chartists is constant over time, the symmetric impact of stabilizing fundamentalists adjusts endogenously according to market circumstances: Using monthly data for various commodities such as cotton, sugar or zinc, our STAR–GARCH model indicates that their influence positively depends on the distance between the commodity price and its long-run equilibrium value. Fundamentalists seem to become more and more convinced that mean reversion will set in as the mispricing enlarges. Commodity price cycles may thus emerge due to the nonlinear interplay between different trader types. The paper represents the authors’ personal opinion and does not necessarily reflect the views of the Deutsche Bundesbank.     

价格鉴证风险及应对的初步分析

价格鉴证作为社会主义市场经济活动中的重要内容,对于保障社会经济的健康运行发挥着重要的作用。价格鉴证人员作为价格鉴证工作的主要承担者,为价格鉴证工作的发展做出了重大贡献,但也面临着一系列潜在的危险。从价格鉴证风险的产生与发展角度出发,对应对价格鉴证风险提供相应的政策建议。     

Nonlinearity and asymmetry in the exchange rate pass‐through: What role for nominal price stickiness?

This paper examines the importance of nominal rigidity for nonlinearity and asymmetry of exchange rate pass‐through. For this purpose, we rely on company‐level data of French importing firms. We find that the well established fact that “prices rise faster than they fall,” which is characterized by the convex import price reaction function, lies primarily with the presence of nominal rigidity. Once price stickiness is controlled for, there is empirical evidence that the import price reaction function is rather concave if the linearity assumption can be rejected, indicating that firms aim primarily to protect their market share.     

Retail price responses to changes in wholesale prices in the US beef industry: differences among quality grades and primal cuts

This study examines the transmission of wholesale prices to retail prices for differentiated beef products. Specifically, we study vertical price movement for products differentiated by quality grades and primal cuts in the US beef industry. Our study considers two quality grades– United States Department of Agriculture (USDA) Choice and USDA Select, and three primal cuts– chuck, round and sirloin. Using threshold-based autoregressive and error correction models, and non-linear impulse response functions, we explore if characteristics of price adjustment differ by quality attributes of the products. Results show that there exists the ‘rocket and feather’ effect in the adjustment of retail prices of most beef grades and cuts in response to changes in wholesale prices, and such asymmetric adjustment effect is more pronounced for higher quality grade (Choice) than lower quality grade (Select). Evidence of similar price adjustment is found from the high-quality cut (sirloin). Our results underscore the differences in price adjustment by product quality in the US beef industry.     

Production response to price risk and market liberalization of Nigerian major agricultural crops

This study models supply response for major agricultural crops in Nigeria which include the standard arguments and price risk. The data comes from Central Bank of Nigeria annual reports and statement of account, National Bureau of Statistics＇ abstract of statistics and annual Agricultural survey manual. The data are analyzed using autoregressive distributed lag and cointegration and error correction models. The results indicate that producers are responsive not only to price but also to price risk and exchange rate.     

Uncertainty and Retail Location Patterns

This paper focuses on the interaction between government defence objectives and budget policy. By developing a theory of recruit behaviour and estimating the associated recruitment function, the study examines how alternative defence manpower requirements might be met and indicates the budgetary implications of this.

The recruit theory is derived from the general theory of occupational choice and function estimation is by ordinary least squares regression techniques. The budget analysis is carried out in a simulation exercise which combines the supply analysis with manpower requirement specifications. The exercise well illustrates the defence manning—budget cost trade-off and the implications of institutional constraints such as sole reliance upon volunteer recruitment and the operation of a wages and incomes policy.     

外资零售业发展趋势与我国零售业发展策略选择

随着我国加入WTO后零售业保护性过渡期的结束，外资零售企业可以不受地域、股权、门店数量的限制，全面进入我国零售市场；本土零售企业将面临着更为广泛的冲击与挑战。对此，应从我国零售业市场现状出发，比较分析中外零售业的差距，探讨外资零售企业的发展趋势及我国零售业发展策略。     

Energy price shocks and milk price adjustments

Much previous research on energy price transmission sheds light on the relationship between oil prices and aggregate commodity prices, such as for agricultural products, or food price indexes. This letter uses data from 12 U.S. cities between 2001 and 2011 to examine how energy prices are transmitted to fluid milk products at the retail level. Results indicate the existence of an asymmetric energy pass-through (a rise is transmitted faster than a fall in prices) and that private label milk products are more insulated from energy price shocks and adjust at similar rate with national manufacturer brands.     

依托零售业技术培训中心带动经济发展

位于新泽西州伊丽莎白市的零售业技术培训中心是一家创新性的职业培训中心，坐落在泽西花园区，从1999年10月建成开业以来，中心已培训了4000余名伊丽白市和联合县的居民。     

The response of aggregate demand to income,money supply,and price level

The response elasticities of (nominal) aggregate demand to the price level and to other nominal variables (e.g., money supply) are both positive but smaller than one. Aggregate demand is less/as responsive to real income than/as to the price level in the short/long run. Real aggregate demand is less/as responsive to real income than/as nominal aggregate demand is to the price level in the short/long run. Some uses of these results are indicated.     

Information asymmetry and reentry

We model a reputation game, in which a sequence of short-run players chooses if to interact with a long-run player. Although beliefs may be identical, choices may be different, as not-interacting can lead the long-run player to improve on effort.     

中国零售业如何与国外零售企业竞争

按照WTO的要求,2005年底中国零售业在股权比例、开店地域以及数量等各方面向外资开放,零售业成为我国经济发展中变化最快、市场化程度最高、竞争最激烈的行业之一。本文认为本土零售企业在严峻的竞争环境下,应借鉴国外发达国家零售企业的经验,发挥本土企业的优势,把握机遇,提高自身整体素质,并仔细研究市场格局,把握市场走势,选择具有自主竞争优势的领域,才能提高抗衡的实力。     

Asset price boom-burst cycle as an elastic money response to technological shocks

Through a finite-lived dynamic stochastic general equilibrium (DSGE) model comprising bubbly capital with fixed supply, one-period gestation lag, and a cash-in-advance constraint, we show that a money-accommodated but not price-accommodated technological shock can trigger excessive movement in the asset price even in a flexible-price and frictionless environment.     

Economic liberalization and price response of aggregate private investment: time series evidence from India

Abstract.  This paper presents evidence on the effects of economic liberalization of 1991 on the price responsiveness of aggregate private investment in India. The wide ranging reforms are expected to increase the price response of private investment due to (i) the Le Chatelier effect, (ii) a higher price elasticity of demand for final goods, and (iii) possible relaxation of the credit constraint. The empirical results, based on alternative specifications, estimation methods, and sample periods, show a dramatic increase in the price response; the elasticity of investment with respect to the relative cost of capital has increased five times after the dismantling of the 'Licence Raj.'     

Product cycles,innovation cycles,and regional economic change

The effects of technological change below the level of national and sectoral aggregations are frequently overlooked. This paper reviews the regional economic changes that result from technological change at both the firm level and in the individual plant. The related concepts of product cycles and innovation cycles provide a perspective for assessing regional and local effects. Government policies related to innovation are examined in the light of regional economic implications.