Report Number

1996-013

Abstract

This paper uses a unique micro data set to test for the presence of price asymmetries at the firm level. We find that firm pricing is indeed asymmetric, as Tobin (1972) suggested. Moreover, there is strong evidence to support Ball and Mankiw's (1994) suggestion that firm price asymmetry is dependent on inflation.

Keywords

Asymmetric pricing, Inflation, Menu-Costs, Ordered Probit, Survey Data

Date of this Version

1996

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