Key Developments in Monetary Economics: Screen Reader version
♣
Microeconomic Evidence on Price-Setting
Figure Data
Figure 1: Price Change Frequency by Product Category
| Entry Level Item | Frequency |
| TG031 | 0.0271605301493439 |
| GD011 | 0.0291638428525341 |
| GC011 | 0.0326067603076746 |
| GD031 | 0.0345827042054692 |
| MC011 | 0.0411194123088042 |
| RGN11 | 0.0439841709460817 |
| RB021 | 0.0448411485998612 |
| MC041 | 0.0448495186092837 |
| GD061 | 0.0449650169478461 |
| TG032 | 0.0451111962389596 |
| GD043 | 0.0479473134300697 |
| MC021 | 0.0494899725605248 |
| GD051 | 0.0535478569956416 |
| AA021 | 0.0538181571335302 |
| RE021 | 0.0542366090829548 |
| GD042 | 0.0553596513282031 |
| HH031 | 0.0554551327911386 |
| HM014 | 0.0590872101105233 |
| HH033 | 0.0592515059729701 |
| HM011 | 0.0610255086136698 |
| HH021 | 0.0625494503355028 |
| AD016 | 0.0627513533992051 |
| RB012 | 0.0630492251242251 |
| GD052 | 0.0642062676751174 |
| GD041 | 0.0667772416728706 |
| RCN21 | 0.0669555880249591 |
| EA013 | 0.0674339936026839 |
| HM013 | 0.0680998596297603 |
| RF031 | 0.068823910761538 |
| AA022 | 0.069155552404164 |
| AG011 | 0.0695799165247678 |
| FVN00 | 0.0707807450617927 |
| HL031 | 0.0709738364294708 |
| MC031 | 0.0713788560776485 |
| RD022 | 0.0718510439535606 |
| HH022 | 0.0745822930123657 |
| GE013 | 0.0746140886002391 |
| HH032 | 0.0752506786868458 |
| HL042 | 0.0754205360921534 |
| HJ031 | 0.0754836590557781 |
| HL032 | 0.0756705025727785 |
| AB014 | 0.0766201634606324 |
| AE011 | 0.0768723414406725 |
| RA042 | 0.0769898338711152 |
| HN012 | 0.0771284843722077 |
| RD021 | 0.0774807075063699 |
| EA012 | 0.0775765178480256 |
| GB021 | 0.0777815711230404 |
| AB013 | 0.0782765960441667 |
| HP021 | 0.078567853390116 |
| FX011 | 0.0786648463373639 |
| EB031 | 0.078987828833388 |
| AA031 | 0.0791524370303488 |
| MD021 | 0.0795098235498569 |
| GE011 | 0.0795835800441321 |
| AA041 | 0.0801132881722575 |
| RC023 | 0.0801899511651206 |
| HJ033 | 0.0802998259940503 |
| EB021 | 0.0803107626855058 |
| AC042 | 0.0807348010966725 |
| HM012 | 0.0811638081329446 |
| GB014 | 0.081689677367364 |
| HL012 | 0.081696205914554 |
| RFN11 | 0.0825917509034398 |
| HJ012 | 0.0830868915520233 |
| RA061 | 0.0831543849103893 |
| TG033 | 0.0833333333333332 |
| FT041 | 0.0834168497297352 |
| FR021 | 0.0842410028622538 |
| AA012 | 0.0844023224429848 |
| HL041 | 0.0847374242795226 |
| MB023 | 0.0848313358012392 |
| AE031 | 0.0860639909337416 |
| HP011 | 0.0864913946500177 |
| FW031 | 0.0871310460366296 |
| RB022 | 0.0872809361846623 |
| HM022 | 0.0873074473544038 |
| AA011 | 0.0877018733035697 |
| TC021 | 0.0881268374016457 |
| AE022 | 0.0881835169977974 |
| HG021 | 0.0882233223913962 |
| RE011 | 0.0891184100294211 |
| HP042 | 0.0901553193077805 |
| HJ023 | 0.0904829630298907 |
| HJ022 | 0.0909386059728035 |
| FT031 | 0.0919320457066465 |
| HM021 | 0.0924752907752988 |
| RD011 | 0.0925592322943524 |
| EB011 | 0.0926911812379241 |
| AA013 | 0.0931317642586192 |
| HN031 | 0.0932040319975867 |
| GE012 | 0.0939847194213907 |
| GB011 | 0.0945002364425992 |
| GB012 | 0.0947519040912683 |
| MD011 | 0.0947612925333411 |
| FB042 | 0.0948505089119932 |
| AA023 | 0.0955935778105557 |
| FB032 | 0.0962587424354377 |
| HJ024 | 0.0968460903260809 |
| HP041 | 0.0973881654890746 |
| AG021 | 0.0975841478249992 |
| RE012 | 0.0983274770729322 |
| HJ021 | 0.0983431686291552 |
| AE021 | 0.0989533752764048 |
| HP043 | 0.0990331560418242 |
| FP021 | 0.100147233231301 |
| HK021 | 0.100942039306233 |
| HKN22 | 0.101077523531344 |
| FP022 | 0.101430872949455 |
| RC013 | 0.101654501893306 |
| AC041 | 0.101815316899382 |
| MB021 | 0.101985753640956 |
| HL011 | 0.102563571760265 |
| FT042 | 0.102792034133273 |
| FR031 | 0.102867828098124 |
| HP031 | 0.102882359194124 |
| FTN61 | 0.103907500496689 |
| EE042 | 0.104079995979769 |
| AF011 | 0.105322158979736 |
| AB012 | 0.105467511520665 |
| MB022 | 0.106101904476463 |
| GD021 | 0.106763894464286 |
| FT043 | 0.107958280446267 |
| MB011 | 0.108199097380673 |
| FJ031 | 0.10858329391927 |
| GB013 | 0.11026214130789 |
| RA041 | 0.11029756751928 |
| RF022 | 0.110459032391021 |
| RF021 | 0.112132878933824 |
| FW021 | 0.1122446639709 |
| HH011 | 0.112361286601338 |
| HL021 | 0.112546300935159 |
| HJ011 | 0.113261780515937 |
| HJ032 | 0.113715096260939 |
| TC022 | 0.113816673410899 |
| RE031 | 0.113943917803317 |
| RB011 | 0.114656307932915 |
| FT021 | 0.114795126036771 |
| EE041 | 0.114899012762975 |
| FS031 | 0.114998369324408 |
| FN011 | 0.117038980411954 |
| FT011 | 0.117688159532957 |
| TD021 | 0.117774895482984 |
| FB041 | 0.118139585288809 |
| EB041 | 0.118406160679363 |
| FB031 | 0.11919251793864 |
| AF012 | 0.120938800311316 |
| HG011 | 0.121447750200294 |
| AD014 | 0.121512255619622 |
| EE021 | 0.122231727055087 |
| FA031 | 0.122232666667729 |
| EA011 | 0.122873448876247 |
| AC011 | 0.123024568150095 |
| RC012 | 0.123244461599324 |
| FR011 | 0.123819805093519 |
| AA032 | 0.123931273992658 |
| HN011 | 0.12604436342093 |
| FW011 | 0.126223078779495 |
| AD011 | 0.127823170670237 |
| GA021 | 0.129005102384909 |
| HK014 | 0.129363012396067 |
| FMN00 | 0.129467089773019 |
| AC043 | 0.12951807464942 |
| HK013 | 0.129733340267722 |
| FSN21 | 0.129937211102431 |
| AB015 | 0.130644910866591 |
| HN021 | 0.130908115251955 |
| AB011 | 0.131575731519049 |
| RC011 | 0.132064454678303 |
| ACN30 | 0.132457586309391 |
| FB011 | 0.132686193056593 |
| FA011 | 0.134222172142966 |
| FT044 | 0.134510952554772 |
| FE012 | 0.134805244893104 |
| FB043 | 0.136623071127909 |
| TE011 | 0.136804676525004 |
| RG022 | 0.138331397590141 |
| FT051 | 0.140099270611585 |
| TA012 | 0.143403668607415 |
| RA051 | 0.143919243034321 |
| AD015 | 0.145395162044144 |
| RA031 | 0.146647705962178 |
| AD013 | 0.147351493969535 |
| RG021 | 0.149793444807554 |
| FE011 | 0.150424479607545 |
| FJ021 | 0.152048864174643 |
| FA021 | 0.152789344519526 |
| MA011 | 0.15280248141445 |
| FS011 | 0.152997115214945 |
| FB021 | 0.153947833737565 |
| RD012 | 0.157079581092482 |
| HK012 | 0.157480291677877 |
| RA021 | 0.160068884870769 |
| HK011 | 0.163303758695559 |
| FB044 | 0.165320602564323 |
| AC021 | 0.166260571990003 |
| FE013 | 0.175201092424013 |
| TD011 | 0.176424982487452 |
| FP011 | 0.178250943753976 |
| FD011 | 0.178505923774805 |
| AD012 | 0.181294736187256 |
| FGN00 | 0.18350231411277 |
| RA011 | 0.183788722693622 |
| FFN00 | 0.1876014308069 |
| TD031 | 0.192252235257447 |
| FD021 | 0.199988615805722 |
| FC041 | 0.202747462716818 |
| TC011 | 0.206538666956832 |
| FK021 | 0.209276398036321 |
| FD041 | 0.210882701169553 |
| GA011 | 0.218039377073605 |
| FC011 | 0.219438707896331 |
| HE021 | 0.229466513089103 |
| FJN11 | 0.230640515293522 |
| TG021 | 0.233695139915486 |
| FD031 | 0.248332141169168 |
| FC021 | 0.248920424256828 |
| FC031 | 0.254051816990775 |
| FK011 | 0.25440412284675 |
| ED021 | 0.263401087171035 |
| FL011 | 0.273804348801253 |
| ED011 | 0.290020956851093 |
| TG023 | 0.301713592488093 |
| FH011 | 0.352083856756005 |
| EE011 | 0.356252896059403 |
| TA011 | 0.391730094836637 |
| FL041 | 0.40622663773215 |
| HB021 | 0.408271828245088 |
| FL031 | 0.433030124432137 |
| TAN31 | 0.446021903828857 |
| FKN31 | 0.478448637228399 |
| TG011 | 0.542649239601994 |
| HE011 | 0.566590319251229 |
| FL021 | 0.640157395528741 |
| HF011 | 0.652940610754034 |
| TB021 | 0.68435688968621 |
| HF021 | 0.823224146324777 |
| TB013 | 0.882760767150523 |
| TB012 | 0.900376689417422 |
| TB011 | 0.905288659374063 |
Figure 2: Frequency vs Durability in the U.S. CPI
| | Durability | Frequency Posted | MG Weight |
| Apparel | 3.01 | 0.298 | 12.4 |
| Education and Communication | 1.14 | 0.197 | 12.2 |
| Food and Beverages | 0.00 | 0.232 | 40.2 |
| Other Goods and Services | 1.08 | 0.128 | 9.7 |
| Housing | 2.39 | 0.403 | 30.4 |
| Medical Care | 0.57 | 0.087 | 13.8 |
| Recreation | 2.03 | 0.153 | 15.0 |
| Transportation | 4.94 | 0.393 | 38.5 |
Figure 3: Frequency vs Cyclicality in the U.S. CPI
| | Cyclicality Constant | Frequency Posted | MG Weight |
| Apparel | 1.75 | 0.298 | 12.4 |
| Education and Communication | 0.26 | 0.197 | 12.2 |
| Food and Beverages | 0.82 | 0.232 | 40.2 |
| Other Goods and Services | 0.60 | 0.128 | 9.7 |
| Housing | 1.10 | 0.403 | 30.4 |
| Medical Care | 0.09 | 0.087 | 13.8 |
| Recreation | 0.75 | 0.153 | 15.0 |
| Transportation | 2.71 | 0.393 | 38.5 |
Figure 4: Cross-country Frequency vs. Inflation
| Country | Inflation | Frequency |
| Austria | 0.00166666666666667 | 0.151 |
| Belgium | 0.00183333333333333 | 0.169 |
| Brazil | 0.00491666666666667 | 0.372 |
| Canada | 0.00166666666666667 | 0.281 |
| Chile | 0.00219166666666667 | 0.461 |
| Denmark | 0.0017385725308642 | 0.173 |
| Euro Area | 0.00158333333333333 | 0.151 |
| Finland | 0.00145110119047619 | 0.165 |
| France | 0.00125 | 0.189 |
| Germany | 0.00108333333333333 | 0.113 |
| Hungary | 0.00444932835820896 | 0.151 |
| Israel | 0.008 | 0.245 |
| Italy | 0.00206886284722222 | 0.1 |
| Japan | -0.000483333333333333 | 0.231 |
| Luxembourg | 0.00208828703703704 | 0.17 |
| Mexico | 0.012 | 0.294 |
| Netherlands | 0.00242952380952381 | 0.165 |
| Norway | 0.00447623148148148 | 0.213 |
| Portugal | 0.00216666666666667 | 0.222 |
| Sierra Leone | 0.007605 | 0.515 |
| Slovakia | 0.00708333333333333 | 0.34 |
| South Africa | 0.00512229838709678 | 0.16 |
| Spain | 0.0027631712962963 | 0.15 |
| United States | 0.002 | 0.261 |
| United States | 0.00275 | 0.299 |
| United States | 0.00271262820512821 | 0.211 |
Figure 5: U.S. Monthly CPI Frequency Over Time
| Quarter | Frequency |
| 1988:2 | 0.1500 |
| 1988:3 | 0.1673 |
| 1988:4 | 0.1800 |
| 1989:1 | 0.1724 |
| 1989:2 | 0.1888 |
| 1989:3 | 0.1828 |
| 1989:4 | 0.1857 |
| 1990:1 | 0.1893 |
| 1990:2 | 0.1833 |
| 1990:3 | 0.1738 |
| 1990:4 | 0.1700 |
| 1991:1 | 0.1758 |
| 1991:2 | 0.1549 |
| 1991:3 | 0.1567 |
| 1991:4 | 0.1527 |
| 1992:1 | 0.1568 |
| 1992:2 | 0.1436 |
| 1992:3 | 0.1569 |
| 1992:4 | 0.1481 |
| 1993:1 | 0.1517 |
| 1993:2 | 0.1392 |
| 1993:3 | 0.1570 |
| 1993:4 | 0.1519 |
| 1994:1 | 0.1425 |
| 1994:2 | 0.1429 |
| 1994:3 | 0.1537 |
| 1994:4 | 0.1426 |
| 1995:1 | 0.1553 |
| 1995:2 | 0.1571 |
| 1995:3 | 0.1533 |
| 1995:4 | 0.1475 |
| 1996:1 | 0.1518 |
| 1996:2 | 0.1550 |
| 1996:3 | 0.1610 |
| 1996:4 | 0.1622 |
| 1997:1 | 0.1561 |
| 1997:2 | 0.1437 |
| 1997:3 | 0.1467 |
| 1997:4 | 0.1550 |
| 1998:1 | 0.1418 |
| 1998:2 | 0.1676 |
| 1998:3 | 0.1687 |
| 1998:4 | 0.1517 |
| 1999:1 | 0.1430 |
| 1999:2 | 0.1464 |
| 1999:3 | 0.1469 |
| 1999:4 | 0.1543 |
| 2000:1 | 0.1599 |
| 2000:2 | 0.1678 |
| 2000:3 | 0.1547 |
| 2000:4 | 0.1659 |
| 2001:1 | 0.1685 |
| 2001:2 | 0.1694 |
| 2001:3 | 0.1646 |
| 2001:4 | 0.1650 |
| 2002:1 | 0.1785 |
| 2002:2 | 0.1650 |
| 2002:3 | 0.1686 |
| 2002:4 | 0.1728 |
| 2003:1 | 0.1805 |
| 2003:2 | 0.1870 |
| 2003:3 | 0.1779 |
| 2003:4 | 0.1887 |
| 2004:1 | 0.1751 |
| 2004:2 | 0.1741 |
| 2004:3 | 0.1768 |
| 2004:4 | 0.1705 |
| 2005:1 | 0.1816 |
| 2005:2 | 0.1856 |
| 2005:3 | 0.1865 |
| 2005:4 | 0.1843 |
| 2006:1 | 0.1739 |
| 2006:2 | 0.1770 |
| 2006:3 | 0.1836 |
| 2006:4 | 0.1778 |
| 2007:1 | 0.1847 |
| 2007:2 | 0.1869 |
| 2007:3 | 0.1846 |
| 2007:4 | 0.1917 |
| 2008:1 | 0.1920 |
| 2008:2 | 0.2053 |
| 2008:3 | 0.2099 |
| 2008:4 | 0.2139 |
| 2009:1 | 0.2010 |
| 2009:2 | 0.2099 |
Figure 6: Posted vs Reference Price Inflation, U.S. CPI
| Quarters | Posted Price Inflation | Reference Price Inflation |
| 1988:3 | 0.0092 | 0.0024 |
| 1988:4 | 0.0050 | 0.0026 |
| 1989:1 | 0.0050 | 0.0067 |
| 1989:2 | 0.0061 | 0.0054 |
| 1989:3 | 0.0076 | 0.0043 |
| 1989:4 | 0.0123 | 0.0047 |
| 1990:1 | 0.0036 | 0.0056 |
| 1990:2 | -0.0023 | 0.0025 |
| 1990:3 | 0.0063 | 0.0107 |
| 1990:4 | 0.0167 | 0.0147 |
| 1991:1 | -0.0009 | -0.0011 |
| 1991:2 | -0.0018 | -0.0029 |
| 1991:3 | 0.0008 | 0.0065 |
| 1991:4 | 0.0081 | 0.0053 |
| 1992:1 | -0.0041 | -0.0029 |
| 1992:2 | -0.0006 | -0.0037 |
| 1992:3 | 0.0033 | 0.0012 |
| 1992:4 | 0.0048 | 0.0009 |
| 1993:1 | -0.0036 | -0.0047 |
| 1993:2 | -0.0029 | -0.0042 |
| 1993:3 | 0.0028 | -0.0012 |
| 1993:4 | -0.0017 | -0.0078 |
| 1994:1 | -0.0039 | -0.0055 |
| 1994:2 | -0.0054 | -0.0028 |
| 1994:3 | -0.0015 | -0.0020 |
| 1994:4 | 0.0071 | 0.0035 |
| 1995:1 | -0.0052 | -0.0045 |
| 1995:2 | -0.0057 | -0.0055 |
| 1995:3 | 0.0008 | -0.0024 |
| 1995:4 | -0.0008 | -0.0017 |
| 1996:1 | -0.0059 | -0.0004 |
| 1996:2 | -0.0015 | -0.0015 |
| 1996:3 | 0.0018 | -0.0003 |
| 1996:4 | 0.0007 | 0.0004 |
| 1997:1 | -0.0072 | -0.0097 |
| 1997:2 | -0.0069 | -0.0047 |
| 1997:3 | 0.0002 | -0.0017 |
| 1997:4 | -0.0063 | -0.0024 |
| 1998:1 | -0.0106 | -0.0064 |
| 1998:2 | -0.0042 | -0.0066 |
| 1998:3 | -0.0035 | -0.0023 |
| 1998:4 | -0.0012 | -0.0029 |
| 1999:1 | -0.0032 | -0.0038 |
| 1999:2 | -0.0018 | -0.0001 |
| 1999:3 | 0.0035 | 0.0015 |
| 1999:4 | -0.0006 | 0.0012 |
| 2000:1 | 0.0044 | 0.0058 |
| 2000:2 | 0.0040 | 0.0054 |
| 2000:3 | -0.0024 | -0.0030 |
| 2000:4 | 0.0029 | -0.0065 |
| 2001:1 | -0.0048 | -0.0038 |
| 2001:2 | -0.0013 | -0.0045 |
| 2001:3 | -0.0160 | -0.0080 |
| 2001:4 | -0.0108 | -0.0028 |
| 2002:1 | 0.0081 | -0.0005 |
| 2002:2 | -0.0044 | -0.0035 |
| 2002:3 | -0.0008 | -0.0007 |
| 2002:4 | 0.0011 | -0.0016 |
| 2003:1 | 0.0009 | 0.0022 |
| 2003:2 | -0.0085 | -0.0058 |
| 2003:3 | -0.0006 | 0.0039 |
| 2003:4 | -0.0031 | 0.0002 |
| 2004:1 | 0.0029 | 0.0003 |
| 2004:2 | 0.0016 | 0.0044 |
| 2004:3 | 0.0027 | 0.0014 |
| 2004:4 | -0.0048 | 0.0035 |
| 2005:1 | 0.0121 | 0.0089 |
| 2005:2 | -0.0017 | 0.0030 |
| 2005:3 | 0.0188 | 0.0106 |
| 2005:4 | -0.0062 | 0.0087 |
| 2006:1 | 0.0020 | -0.0026 |
| 2006:2 | 0.0032 | 0.0035 |
| 2006:3 | -0.0144 | -0.0043 |
| 2006:4 | 0.0050 | -0.0034 |
| 2007:1 | 0.0114 | 0.0057 |
| 2007:2 | -0.0024 | 0.0064 |
| 2007:3 | 0.0002 | 0.0017 |
| 2007:4 | 0.0081 | 0.0048 |
| 2008:1 | 0.0076 | 0.0107 |
| 2008:2 | 0.0205 | 0.0152 |
| 2008:3 | -0.0190 | -0.0184 |
| 2008:4 | -0.0359 | -0.0214 |