scholarly journals Evaluating Microfoundations for Aggregate Price Rigidities: Evidence from Matched Firm - Level Data on Product Prices and Unit Labor Cost

2009 ◽  
Author(s):  
Mikael Carlsson ◽  
Oskar Nordstrom Skans
Keyword(s):  
Labor Cost ◽  
Unit Labor Cost ◽  
Firm Level ◽  
Level Data ◽  
Price Rigidities ◽  
Firm Level Data

scholarly journals Evaluating Microfoundations for Aggregate Price Rigidities: Evidence from Matched Firm-Level Data on Product Prices and Unit Labor Cost

2012 ◽  
Vol 102 (4) ◽  
pp. 1571-1595 ◽  
Author(s):  
Mikael Carlsson ◽  
Oskar Nordström Skans
Keyword(s):  
Marginal Cost ◽  
Labor Cost ◽  
Unit Labor Cost ◽  
Firm Level ◽  
Price Adjustments ◽  
Level Data ◽  
Price Rigidities ◽  
Key Driver ◽  
Pass Through ◽  
Matched Data

Using matched data on product-level prices and the producing firm's unit labor cost, we find a moderate pass-through of current idiosyncratic marginal-cost changes. Also, the response does not vary across firms facing very different idiosyncratic shock variances, but identical aggregate conditions. These results do not fit the predictions of Mackowiak and Wiederholt (2009). Neither do firms react strongly to predictable marginal-cost changes, as expected from Mankiw and Reis (2002). We find that firms consider both current and expected future marginal cost when setting prices. This points toward impediments to continuous price adjustments as a key driver of monetary non-neutrality.

A Note on the Calculation of Firm-specific and Skill-specific Labor Costs from Firm-level Data / Zur Berechnung von qualifikations- und firmenspezifischen Arbeitskosten auf der Grundlage von Firmendaten

2000 ◽  
Vol 220 (5) ◽  
Author(s):  
Ulrich Kaiser
Keyword(s):  
Survey Data ◽  
Labor Cost ◽  
Data Sets ◽  
Labor Costs ◽  
Firm Level ◽  
Simple Method ◽  
Aggregated Data ◽  
Level Data ◽  
Firm Level Data ◽  
Total Labor

SummaryVirtually all empirical firm-level studies on the demand for heterogeneous labor do not include labor cost in the econometric specification. This is due to the fact that business and innovation survey data usually lack differentiated information on labor cost. This paper shows how reliable skill-specific and firm-specific labor cost can be calculated from firm-level data on the basis of information on total labor cost and firms' skill mix only. The simple method proposed here is applied to German innovation survey data.Three consistency checks are performed: (i) the estimated skill-specific and firm-specific labor costs are compared to aggregated data taken from official statistics, (ii) it is tested if the methods leads to "too much" variation of skill-specific labor costs within firms across time and (iii) labor costs are estimated for two different data sets and compared to reality. The consistency checks indicate that the labor cost decomposition proposed in this paper leads to reliable results.

Ageing and Employability. Evidence from Belgian Firm-Level Data

2012 ◽  
Author(s):  
Mariann Rigo ◽  
Vincent Vandenberghe ◽  
Fábio Waltenberg
Keyword(s):  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

Multinational Banks and IMF Conditionality

2021 ◽  
Author(s):  
Trung A Dang ◽  
Randall W Stone
Keyword(s):  
Political Economy ◽  
Investment Decisions ◽  
Location Decisions ◽  
Preferential Treatment ◽  
Firm Level ◽  
Financial Firms ◽  
Level Data ◽  
Firm Level Data ◽  
Imf Programs ◽  
Investment Location

Abstract We find firm-level evidence that US banks receive preferential treatment in countries under IMF conditionality. We rely on investment location decisions to infer firms’ expectations about future profits and find that US firms are approximately 53 percent more likely to acquire financial firms in countries under financial conditionality. IMF programs without financial conditionality and FDI in other sectors serve as placebo tests. Financial conditionality has weak effects on investment decisions by non-US firms, which implies a political-economy interpretation. Firm-level data indicate that the distinctive behavior of US firms is not due to advantages of scale or to a US-firm fixed effect, but to US influence in the IMF. Firms from other major IMF shareholders benefit as well, but the effects are much weaker. The effects are concentrated in the politically relevant firms that have local affiliates, which is consistent with the interpretation that firms lobby for preferential treatment.

Sign in / Sign up

Export Citation Format

Share Document