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Price changes by firms in New Zealand - some evidence from the Quarterly Survey of Business Opinion

Author

Listed:
  • Andrew Coleman
  • Brian Silverstone

    (Reserve Bank of New Zealand)

Abstract

TIn the last decade, central banks have conducted new research enhancing their understanding of firm level price-setting behaviour. This work has revealed new information about the frequency with which firms change prices and provided explanations as to why prices are sticky. This information could potentially improve monetary policymaking and, as a result, reduce the real cost of policy changes and non-policy shocks. This article outlines the major themes and results from selected international research. It then examines price changing behaviour in New Zealand using firm-level data from the quarterly survey of business opinion (OSBO) published by new Zealand intuit of economic research (NZIER). In line with international research. We find considerable diversity in the frequency of the price changes by firms moreover; firms change prices more in response to cost changes than demand changes, and in response to falling demand than increasing demand

Suggested Citation

  • Andrew Coleman & Brian Silverstone, 2007. "Price changes by firms in New Zealand - some evidence from the Quarterly Survey of Business Opinion," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 70, September.
    • Handle: RePEc:nzb:nzbbul:september2007:4
    as

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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2007/2007sep70-3colemansilverstone.pdf
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    References listed on IDEAS

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    2. Miles Parker, 2017. "Price-setting behaviour in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 51(3), pages 217-236, September.
    3. John Gilbert & Onur A. Koska & Reza Oladi, 2023. "Foreign market entry, upstream market power, and endogenous mode of downstream competition," Review of International Economics, Wiley Blackwell, vol. 31(1), pages 341-362, February.
    4. John Gilbert & Onur A. Koska & Reza Oladi, 2022. "International trade, differentiated goods, and strategic asymmetry," Southern Economic Journal, John Wiley & Sons, vol. 88(3), pages 1178-1198, January.
    5. Ashley Dunstan & Troy Matheson & Hamish Pepper, 2009. "Analysing wage and price dynamics in New Zealand," Reserve Bank of New Zealand Discussion Paper Series DP2009/06, Reserve Bank of New Zealand.

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