TY  - UNPD
A1  - Gerlach, Stefan
A1  - Kugler, Peter
T1  - Deflation and relative prices : evidence from Japan and Hong Kong
T2  - Working paper series / Institute for Monetary and Financial Stability ; 12
N2  - We test the menu cost model of Ball and Mankiw (1994, 1995), which implies that the impact of price dispersion on inflation should differ between inflation and deflation episodes, using data for Japan and Hong Kong. We use a random cross-section sample split when calculating the moments of the distribution of price changes to mitigate the small-cross-sectionsample bias noted by Cecchetti and Bryan (1999). The parameter on the third moment is positive and significant in both countries during both the inflation and deflation periods, and the parameter on the second moment changes sign in the deflation period, as the theory predicts. Keywords: inflation, deflation, menu costs, Hong Kong, Japan JEL Numbers: E31
T3  - Working paper series / Institute for Monetary and Financial Stability - 12 
KW  - inflation
KW  - deflation
KW  - menu costs
KW  - Hong Kong
KW  - Japan
Y1  - 2007
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/7026
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-70422
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/pdf/Working%20Paper_2007_12_Gerlach_Kugler.pdf
N1  - Published in: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Money, Macro and Finance in East Asia A2-V3
ER  -