Examining the Behaviour of Individual UK Consumer Prices

Datos Bibliográficos

ID9706090
AutoresPhilip Dane Bunn (0000-0002-0710-3382, Bank of England), Philip Bunn (Bank of England University of Birmingham), Colin Ellis (0000-0002-2908-5269, Bank of England University of Birmingham)
Año2012
Volumen122
Número558
PáginasF35-F55
Fecha de publicación2012-02-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2011.02490.x
OpenAlexW1645073811
IdiomaEN
Citas recibidas3
Referencias citadas15

This article examines how UK consumer prices behave, using two databases with millions of price observations: the microdata that underpin official Consumer Prices Index data and a database of supermarket prices. Prices do not change continuously but our key finding is the marked heterogeneity in the data. That is not consistent with standard microeconomic foundations that typically form the basis of macroeconomic policy models. Declining hazard functions and the distribution of price changes also argue against representative agent models. Our results suggest further work is needed to find a model of price‐setting that genuinely corresponds to how individual UK consumer prices behave

Consumer demand · Consumer price index (South Africa · Econometrics · Economics · Financial economics · Microdata (statistics · Microeconomics · Monetary economics · Monetary policy · Population · Price index · Price setting · Economic theories and models · Economics of Agriculture and Food Markets · Monetary Policy and Economic Impact