CEU Electronic Theses and Dissertations, 2012
| Author | Lukacsy, Katarina |
|---|---|
| Title | Essays on Price Setting Mechanisms |
| Summary | Prices have been documented not to respond instantly to changes in the eco- nomic environment. This phenomenon has inspired numerous articles which study its causes and implications. The research in this area has particu- lar relevance for monetary policy practices and is therefore a very dynamic eld. This thesis contributes to the literature in this area in three parts. The rst part documents the rigidity of prices in Slovakia. While most of the research focuses on the U.S. and Europe economies, studies on transi- tion countries are more scarce. During the period examined Slovakia was preparing for integration into European Union and for the introduction of Euro as the national currency which makes this study a valuable exercise as impacts of these factors can be examined. In the second part, the general behavioral patterns of price adjustments as identied in the rst part are examined using a novel estimation approach. The third part builds on the results of the second part in that it evaluates the welfare implications of the price-modeling structure and highlights the importance of correct assump- tions in the standard macroeconomic models which are the crucial tool in hands of the central optimizer. |
| Supervisor | Campolmi, Alessia; Kezdi, Gabor |
| Department | Economics PhD |
| Full text | https://www.etd.ceu.edu/2012/lukacsy_katarina.pdf |
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