Pricing Decisions in the Euro Area: How Firms Set Prices and Why

Hardcover (Print)
Buy New
Buy New from
Used and New from Other Sellers
Used and New from Other Sellers
from $1.99
Usually ships in 1-2 business days
(Save 96%)
Other sellers (Hardcover)
  • All (9) from $1.99   
  • New (3) from $44.24   
  • Used (6) from $1.99   


This book collects results from ad hoc surveys on firms pricing behavior conducted in 2003 and 2004 by nine National central banks of the Euro area in the context of a joint research project (Eurosystem Inflation Persistence Network). These surveys have proved to be an efficient way to test theories on the pricing strategies of economic agents, documenting, in qualitative terms, the underlying rationale of the observed pricing patterns. The book provides an unprecedented amount of information from more than 11,000 euro area firms, addressing issues such as the relevance of nominal and real rigidities, the information set used by firms in the price setting process, the strategy followed to review prices, the frequency of both price reviews and price changes, the reasons underlying price stickiness, and asymmetries in price adjustment. It also compares results for the euro area to those obtained for other countries by similar studies. Finally, it draws the main implications for theoretical modeling and for monetary policy.

Read More Show Less

Editorial Reviews

From the Publisher
"Knowing how firms set prices is crucial for central banks because it helps them understand the dynamics of aggregate inflation and throws light on how monetary impulses get transmitted through the economic system. Pricing Decisions in the Euro Area: How Firms Set Prices and Why is the first genuine attempt to document via direct surveys the mechanisms behind pricing decision of a large sample of entrepreneurs across a vast economic region. The book offers an unprecedented wealth of comparable microeconomic data and a key to interpret them, highlighting differences in pricing strategies among sectors, firm sizes and countries in the euro area, based on information that comes "straight from the horse's mouth". It is a must-read for scholars and policymakers alike-a truly privileged observatory of how market forces at the micro level interact and contribute to macroeconomic outcomes. Two thumbs up. " —Nicoletta Batini, International Monetary Fund

"More than 11,000 interviews of euro area firms and a thorough examination of individual micro data on consumer and producer prices allow the book to shed new light on price setting behavior. The extent and coverage of the project, the wealth of information contained in this book and the relevance of its results make its reading extremely rewarding for researchers and policy makers alike. The importance of mark-up pricing is confirmed and we learn that customer relations and coordination failures are more important for price reviews and actual changes than menu and information processing costs." —Ignazio Visco, Deputy Director General of the Bank of Italy, former Chief Economist of the OECD

Read More Show Less

Product Details

  • ISBN-13: 9780195309287
  • Publisher: Oxford University Press, USA
  • Publication date: 6/25/2007
  • Edition description: New Edition
  • Pages: 312
  • Product dimensions: 9.30 (w) x 6.30 (h) x 1.10 (d)

Meet the Author

Silvia Fabiani is a senior economist at the Research Department of Banca d'Italia. Her recent research involves monitoring and forecasting the short-term developments of inflation in Italy and the euro area, styding long-term price dynamics and its determinants, and analyzing structural issues concerning price setting across countries and sectors.
Claire Loupias was a senior economist at teh Research Department of Banque de France while writing this book. She is now Assistant Professor at EPEE, Universite d'Evry (France). Her recent research involves the analysis of price setting. She has worked in various fields such as the monetary transmission mechanism and population aging.
Fernando Martins is a senior economist at the Research Department of the Banco de Portugal. The implementation of monetary policy under uncertainty and the analysis of price stickiness based on survey data are his most recent topics of research. He is also Professor of Statistics and Data Analysis at the Universidade Lusiada of Lisbon.
Roberto Sabbatini is a senior economist at the Research Department of Banca d'Italia. His recent research involves the short-term analysis of the Italian economy and that of the euro area, including forecasting, the analysis of the inflationary process and its determinants, and the impact of the euro cash changeover on consumer prices in Italy as well as in the euro area.

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)