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Measuring the Importance of the Uniform Nonsynchronization Hypothesis

Authors 
J.M.C.Santos Silva
Daniel Dias
Publication Year 
2006
JEL Code 
D40 - General
E31 - Price Level; Inflation; Deflation
L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
Abstract 
In this paper we critically reappraise some measures of the importance of time-dependent price setting rules and propose an alternative way to gauge the significance of this type of price setting behaviour. The merits of the proposed measure are highlighted in an application using micro-data. Our results suggest that a large proportion of price trajectories may be compatible with simple time-dependent price setting mechanisms but the strength of this evidence very much depends on the way that is used to evaluate the importance of this type of behaviour.
Document link 
Published as 
A Note on Measuring the Importance of the Uniform Nonsynchronization Hypothesis
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