Title Kainų nustatymas ir jų nelankstumas Lietuvoje /
Translation of Title Price Setting and Price Stickiness in Lithuania.
Authors Virbickas, Ernestas
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Pages 40
Keywords [eng] Price setting ; price stickiness ; New Keynesian Phillips curve ; price review ; price adjustment
Abstract [eng] The object of dissertation research is the price setting behaviour and the associated price stickiness in Lithuania. The goal of the research is to determine the ways and the outcomes of pricing identifying the technological, market competition and other factors behind the pricing process. The dissertation pursues to examine incidence and sources of the price stickiness bringing together the findings from aggregate and micro – firm-level – data. To accomplish the goal of the dissertation, the research postulates a number of tasks. It strives to examine the ways and the outcomes of the price review and the price adjustment in Lithuania. It seeks to determine the frequency of price changes as the frequency of these changes represents the measure of price stickiness. The dissertation examines potential explanations for upward and downward price stickiness. The research looks into the price adjustment following the economic shocks. Particular attention is paid to the relationship between labour costs and prices. The research shows that Lithuanian firms use the time-dependent and the state-dependent price reviewing policies, though these policies appear to be tilted to the state-dependent ones. According to the survey, largest share of the firms – approximately one quarter – change the prices quarterly to half yearly, approximately one fifth of the firms change the prices once a year. Survey evidence on the frequency of price changes in part stands in line with the evidence implied by the aggregate data under the New Keynesian Phillips Curve framework. Delayed price adjustment is found to be mostly related to the price adjustment rather than the price reviewing stage. The evidence on the relationship between labour costs and prices is rather mixed.
Type Summaries of doctoral thesis
Language Lithuanian
Publication date 2012