Do decreasing hazard functions for price changes make any sense?

A common finding in empirical studies using micro data on consumer and producer prices is that hazard functions for price changes are decreasing. This means that a firm will have a lower probability of changing its price the longer it has kept it unchanged. This result is at odds with standard models of price setting. Here a simple explanation is proposed: decreasing hazards may result from aggregating heterogeneous price setters. We show analytically the form of this heterogeneity effect for the most commonly used pricing rules and find that the aggregate hazard is (nearly always decreasing. Results are illustrated using Spanish producer and consumer price data. We find that a very accurate representation of individual data is obtained by considering just 4 groups of agents: one group of flexible Calvo agents, one group of intermediate Calvo agents and one group of sticky Calvo agents plus an annual Calvo process. JEL Classification: C40, D40, E30hazard function, Heterogeneous Agents, mixture models, price setting models

Price setting behaviour in Spain: evidence from micro PPI data

This paper identifies the basic features of price setting behaviour at the producer level in the Spanish economy using a large dataset containing the micro data underlying the construction of the PPI over the period 1991-1999. It explores how these general features are affected by some specific factors (cost structure, degree of competition, demand conditions, government intervention, level of inflation, seasonality, and the practice of using attractive prices) and presents a comparison of price setting practices at the producer and at the consumer level to ascertain whether the retail sector augments or mitigates price stickiness. We find that prices do not change often but do so by a large amount. The cost structure, proxied by the labour share and the relevance of raw materials, and the degree of competition, proxied by import penetration, affect price flexibility. We also find some evidence that producer prices are more flexible than consumer prices. JEL Classification: E31, D40frequency of price changes, price setting, producer prices

La rentabilidad del gasto público en la investigación agraria : una estimación para el caso español

Peer Reviewe

Saint-Pierre de Firminy-Vert: el edificio como objet-à-réaction-émouvante

Cada proyecto del arquitecto es un pequeño paso que, desplazándose de un lado a otro, avanza inexorablemente hacia un objetivo claro: la machine à émouvoir. Le Corbusier acomete la disciplina de la Arquitectura desplegando sus inquietudes en varios frentes simultáneos. La crítica, por norma general, ha descuidado esta consonancia de intereses comunes, fragmentando y disgregando aspectos aparentemente inconexos que en realidad vibran animados por la misma energía que les da forma: la poesía. Este trabajo quiere rescatar y reubicar todos esas piezas, que iluminadas bajo un mismo fulgor han de ayudar a comprender esta visión integradora. No es una lectura unívoca, lineal. A través de este viaje perfilaremos un extenso mapa de conexiones e interacciones que en última instancia pondrán de manifiesto una discurso proyectual monolítico, sintético e universal. Como vehículo de traslación, queremos utilizar una obra de reconocida proyección pero que al mismo tiempo ha permanecido hasta nuestros días ajena al alcance del rigor científico y analítico que se merece. Su estudio nos permitirá fijar un punto de origen, un punto de apoyo, una atalaya desde la que iniciar una larga marcha que, en último término, nos ha de conducir a la misma posición desde donde comenzamos, cerrando así un ciclo vital

Explaining cross-industry heterogeneity in price stickiness.

This note explains cross industry heterogeneity in the frequency of price adjustment. We use the quasi-maximum approach of Papke and Wooldridge (1996) to avoid the shortcomings of OLS regressions to analyse frequencies. We pay particular attention to the role of costs and market competition in explaining cross-industry differences. We find that prices are stickier the higher the labour cost share and the lower are competition and the intermediate input share.producer prices, frequency of price changes, market competition, cost structure

Nightclub business plan

Treball Final de Grau en Administració d'Empreses. Codi: AE1049. Curs 2018-201

MEDEA: A DSGE Model for the Spanish Economy

In this paper, we provide a brief introduction to a new macroeconometric model of the Spanish economy named MEDEA (Modelo de Equilibrio Dinámico de la Economía EspañolA). MEDEA is a dynamic stochastic general equilibrium (DSGE) model that aims to describe the main features of the Spanish economy for policy analysis, counterfactual exercises, and forecasting. MEDEA is built in the tradition of New Keynesian models with real and nominal rigidities, but it also incorporates aspects such as a small open economy framework, an outside monetary authority such as the ECB, and population growth, factors that are important in accounting for aggregate fluctuations in Spain. The model is estimated with Bayesian techniques and data from the last two decades. Beyond describing the properties of the model, we perform different exercises to illustrate the potential of MEDEA, including historical decompositions, long-run and short-run simulations, and counterfactual experiments.DSGE Models, Likelihood Estimation, Bayesian Methods

A real-time disaggregated forecasting model for euro area GDP

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