On the importance of sectoral shocks for price-setting
- We use a novel disaggregate sectoral euro area dataset with a regional breakdown that allows explicit estimation of the sectoral component of price changes (rather than interpreting the idiosyncratic component as sectoral as done in other papers). Employing a new method to extract factors from over-lapping data blocks, we find for our euro area data set that the sectoral component explains much less of the variation in sectoral regional inflation rates and exhibits much less volatility than previous findings for the US indicate. Country- and region-specific factors play an important role in addition to the sector-specific factors. We conclude that sectoral price changes have a “geographical” dimension, as yet unexplored in the literature, that might lead to new insights regarding the properties of sectoral price changes.
| Verfasserangaben: | Guenter W. Beck, Kirstin Hubrich, Massimiliano Marcellino |
|---|---|
| URN: | urn:nbn:de:hebis:30-73629 |
| Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2009,32 |
| Schriftenreihe (Bandnummer): | CFS working paper series (2009, 32) |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2009 |
| Jahr der Erstveröffentlichung: | 2009 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 13.01.2010 |
| Freies Schlagwort / Tag: | Common Factor Models; Disaggregated Prices; Euro Area Regional and Sectoral Inflation |
| GND-Schlagwort: | Europäische Union; Währungsunion; Mitgliedsstaaten; Wirtschaftssektor; Preisänderung |
| HeBIS-PPN: | 22067938X |
| Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Klassifikation: | C Mathematical and Quantitative Methods / C3 Multiple or Simultaneous Equation Models |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
