Javier Turén (PUC)

Seminario “Belief-Dependent Pricing Decisions" Co-autores Serafin Frache y Rodrigo Lluberas.

Abstract: This paper studies the effects of inflation and idiosyncratic cost expectations on firms’ price-adjusting decisions. We explore a novel monthly survey data on firms’ expectations in Uruguay. Through the survey, we can directly assess price-adjustment decisions with firms’ expectations while controlling for time and state-dependent factors. While inflation expectations do not play any role in our results, firms’ beliefs about an expected increase in their overall costs matter as they positively affect the probability of adjusting prices. The evidence is consistent with forward-looking behavior, and thus in line with the presence of pricing rigidities at the firm level. The expectation channel is, however, heterogeneous across firms and operates with a delay. We show that the effect is driven exclusively by large firms.



Datos del Seminario

Fecha de inicio:
10 de Julio, 2020 | 12:00 hrs.

Fecha de término
10 de Julio, 2020 | 13:00 hrs.