PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset
The study analyzes the consumer price behavior by employing the micro-level price data for Pakistan. Substantial heterogeneity in the price setting behavior is observed across various products. The study finds that on an average, 15.8 per cent of prices change every week, with mean (median) duration...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Applied Economics Research Centre, University of Karachi
2018-12-01
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| Series: | Pakistan Journal of Applied Economics |
| Subjects: | |
| Online Access: | http://www.aerc.edu.pk/wp-content/uploads/2018/12/2.Paper-859-SOHAIL-V-1.pdf |
| _version_ | 1828823514827718656 |
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| author | Fauzia SOHAIL Ambreen FATIMA |
| author_facet | Fauzia SOHAIL Ambreen FATIMA |
| author_sort | Fauzia SOHAIL |
| collection | DOAJ |
| description | The study analyzes the consumer price behavior by employing the micro-level price data for Pakistan. Substantial heterogeneity in the price setting behavior is observed across various products. The study finds that on an average, 15.8 per cent of prices change every week, with mean (median) duration of 5.8 (4) weeks of price spell. For most commodities, price increase is found more often than the price decrease. On an average, prices are increased by 8.1 per cent and reduced by 7.2 per cent. It reveals a broad spectrum of synchronization across cities ranging from partial staggered to perfect synchronized pricing behavior. The sticky nature of regulated commodities in case of Pakistan is confirmed in the study. Highly significant estimates in the regression analysis proves the existence of elements of both, the state dependent as well as the time dependent factors in determining frequency of the price change in Pakistan. |
| first_indexed | 2024-12-12T13:37:40Z |
| format | Article |
| id | doaj.art-2f91ee26ad914f6a97921997694e152f |
| institution | Directory Open Access Journal |
| issn | 0254-9204 2519-0431 |
| language | English |
| last_indexed | 2024-12-12T13:37:40Z |
| publishDate | 2018-12-01 |
| publisher | Applied Economics Research Centre, University of Karachi |
| record_format | Article |
| series | Pakistan Journal of Applied Economics |
| spelling | doaj.art-2f91ee26ad914f6a97921997694e152f2022-12-22T00:22:54ZengApplied Economics Research Centre, University of KarachiPakistan Journal of Applied Economics0254-92042519-04312018-12-01282253286PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI DatasetFauzia SOHAILAmbreen FATIMAThe study analyzes the consumer price behavior by employing the micro-level price data for Pakistan. Substantial heterogeneity in the price setting behavior is observed across various products. The study finds that on an average, 15.8 per cent of prices change every week, with mean (median) duration of 5.8 (4) weeks of price spell. For most commodities, price increase is found more often than the price decrease. On an average, prices are increased by 8.1 per cent and reduced by 7.2 per cent. It reveals a broad spectrum of synchronization across cities ranging from partial staggered to perfect synchronized pricing behavior. The sticky nature of regulated commodities in case of Pakistan is confirmed in the study. Highly significant estimates in the regression analysis proves the existence of elements of both, the state dependent as well as the time dependent factors in determining frequency of the price change in Pakistan.http://www.aerc.edu.pk/wp-content/uploads/2018/12/2.Paper-859-SOHAIL-V-1.pdfPrice LevelAggregate PricesCommoditiesPrice Rigidity |
| spellingShingle | Fauzia SOHAIL Ambreen FATIMA PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset Pakistan Journal of Applied Economics Price Level Aggregate Prices Commodities Price Rigidity |
| title | PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset |
| title_full | PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset |
| title_fullStr | PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset |
| title_full_unstemmed | PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset |
| title_short | PRICE SETTING BEHAVIOUR IN PAKISTAN: Stylized Facts from Micro SPI Dataset |
| title_sort | price setting behaviour in pakistan stylized facts from micro spi dataset |
| topic | Price Level Aggregate Prices Commodities Price Rigidity |
| url | http://www.aerc.edu.pk/wp-content/uploads/2018/12/2.Paper-859-SOHAIL-V-1.pdf |
| work_keys_str_mv | AT fauziasohail pricesettingbehaviourinpakistanstylizedfactsfrommicrospidataset AT ambreenfatima pricesettingbehaviourinpakistanstylizedfactsfrommicrospidataset |