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- Title
COSTS, DEMAND, AND PRODUCER PRICE CHANGES.
- Authors
Loupias, Claire; Sevestre, Patrick
- Abstract
Using business survey data, we estimate an ordered probit model to explain the occurrence of producer price increases and decreases in the French manufacturing industry. Our results show that changes in intermediate input prices are the main driver of producer price changes. Changes in firms' labor costs, their production level, or the producer price index of their industry contribute less to the occurrence of price changes. Moreover, when they face a change in their costs, firms adjust their prices upward more often and more rapidly than they do it downward, especially when the shock is perceived as permanent.
- Subjects
FRANCE; WHOLESALE prices; PROBIT analysis; MANUFACTURING industries &; economics; LABOR costs; MATHEMATICAL models; PROBITS; PRICES -- Mathematical models
- Publication
Review of Economics & Statistics, 2013, Vol 95, Issue 1, p315
- ISSN
0034-6535
- Publication type
Article
- DOI
10.1162/REST_a_00276