Measuring the importance of the uniform nonsynchronization hypothesis
In this paper we critically reappraise some measures of the importance of time- dependent price setting rules and propose an alternative way to gauge the signi - cance of this type of price setting behaviour. The merits of the proposed measure are highlighted in an application using micro-data. Our...
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| Other Authors: | , |
| Format: | workingPaper |
| Language: | eng |
| Published: |
2022
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10400.5/23763 |
| Country: | Portugal |
| Oai: | oai:www.repository.utl.pt:10400.5/23763 |
| Summary: | In this paper we critically reappraise some measures of the importance of time- dependent price setting rules and propose an alternative way to gauge the signi - cance of this type of price setting behaviour. The merits of the proposed measure are highlighted in an application using micro-data. Our results suggest that a large proportion of price trajectories may be compatible with simple time-dependent price setting mechanisms but the strength of this evidence very much depends on the way that is used to evaluate the importance of this type of behaviour. |
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