|
Estimation of Quantitative Indicators of Price Stickiness Using CPI Micro Data in Iran
|
Noushin Mohseni *1   , Hossein Asgharpur , Behzad Salmani , Jafar Haghighat |
|
|
|
Abstract: (911 Views) |
This study aims to estimate the known statistical characteristics of nominal price stickiness in the Iranian economy from 1390 to 1399 at different commodity levels of the microdata of consumer price index. Thus, the stickiness between them is also compared. We use the rich microdatasets of consumer price quotes delivered by the Statistical Center of Iran over Farvardin of 1390 to the Mordad of 1399. This sample covers 658482 individual products and about 93٪ of consumer basket items in the base year 1395 and 67٪ of consumer expenditures in the base year 1390.
In this study, the nominal price stickiness index is estimated via the duration and frequency approaches. The comparison of the indicators at the level of items and Coicop groups shows the existence of heterogeneity in the stickiness of nominal prices. Our estimation results suggest that price changes are relatively frequent for “food and nonalcoholic beverages” and “housing, water, electricity, gas, other fuels” groups, and to a lesser extent, transport. In turn, “clothing and footwear” and “recreation and culture” occupy an intermediate situation. The same ranking of product categories is also found in the duration approach. Regarding prices, “food and nonalcoholic beverages” and “housing, water, electricity, gas, other fuels” groups are also characterized by shorter durations and the least stickier components among Coicoip groups. Moreover, the index is estimated at 29٪ based on frequency approaches in the whole economy and about 2.99 months based on the duration approaches, which is less than developed countries. |
|
| |
|
|
Full-Text [PDF 1051 kb]
(479 Downloads)
|
Type of Study: Empirical Study |
Subject:
Prices, Business Fluctuations, and Cycles (E3)
Received: 2021/07/21 | Accepted: 2022/03/6 | Published: 2022/08/20
|
|
|
|
|
|
|
| Send email to the article author |
|
|
