Choosing between time and state dependence micro evidence on firms’ price-reviewing strategie

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WAGE DYNAMICS NETWORK

CHOOSING BETWEEN TIME AND STATE DEPENDENCE MICRO EVIDENCE ON FIRMS’ PRICE-REVIEWING STRATEGIES

WO R K I N G PA P E R S E R I E S
N O 13 0 5 / M A R C H 2011
WAGE DYNAMICS NETWORK

CHOOSING BETWEEN TIME AND STATE DEPENDENCE MICRO EVIDENCE ON FIRMS’ PRICE-REVIEWING STRATEGIES1 by Daniel A. Dias2, Carlos Robalo Marques3 and Fernando Martins4

NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.
In 2011 all ECB publications feature a motif taken from the €100 banknote.

This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1763816.
1 We would like to thank Nuno Alves, Mário Centeno, Ana Cristina Leal and João Sousa for helpful discussions and useful suggestions. The opinions expressed in this paper are those of the authors and do not necessarily coincide with those of Banco de Portugal or the Eurosystem. Any errors or omissions are the sole responsibility of the authors. 2 Department of Economics, University of Illinois at Urbana-Champaign and CEMAPRE; e-mail: ddias@illinois.edu 3 Banco de Portugal (Research Department); e-mail: cmrmarques@bportugal.pt 4 Banco de Portugal (Research Department), ISEG (Technical University of Lisbon) and Universidade Lusíada de Lisboa; e-mail: fmartins@bportugal.pt

Wage Dynamics Network
This paper contains research conducted within the Wage Dynamics Network (WDN). The WDN is a research network consisting of economists from the European Central Bank (ECB) and the national central banks (NCBs) of the EU countries. The WDN aims at studying in depth the features and sources of wage and labour cost dynamics and their implications for monetary policy. The specific objectives of the network are: i) identifying the sources and features of

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