Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Dallas
Globalization Institute Working Papers
Micro price dynamics during Japan's lost decades
Nao Sudo
Kozo Ueda
Kota Watanabe
Abstract

We study micro price dynamics and their macroeconomic implications using daily scanner data from 1988 to 2013. We provide five facts. First, posted prices in Japan are ten times as flexible as those in the U.S. scanner data. Second, regular prices are almost as flexible as those in the U.S. and Euro area. Third, the heterogeneity of frequency and size of price change across products is sizable and maintained throughout the sample period. Fourth, during Japan's lost decades, temporary sales have played an increasingly important role in households' consumption expenditure. Fifth, the frequency of upward regular price revisions and the frequency of sales are significantly correlated with the macroeconomic environment in particular indicators associated with a labor market while other components of price changes are not.


Download Full text
Cite this item
Nao Sudo & Kozo Ueda & Kota Watanabe, Micro price dynamics during Japan's lost decades, Federal Reserve Bank of Dallas, Globalization Institute Working Papers 159, 2013.
More from this series
Note: Published as: Sudo, Nao, Kozo Ueda and Kota Watanabe (2014), "Micro Price Dynamics During Japan's Lost Decades," Asian Economic Policy Review 9 (1): 44-64.
JEL Classification:
Subject headings:
For corrections, contact Amy Chapman ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal