ELASTYCZNOŚĆ CEN DÓBR KONSUMPCYJNYCH W POLSCE
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Date
2007
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Wydział Prawa i Administracji UAM
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ELASTICITY OF CONSUMER PRICES IN POLAND
Abstract
Nominal rigidities are the central feature o f the New Keynesian Economics. Recently, models
employing this assumption have become very popular among academic economists and central
bankers. By re-arranging the Calvo pricing mechanism into an AR(1) model, the author estimated and
calculated the probability of the price change and the mean time between price changes. To achieve
that the aggregated monthly CPI and the series of 26 prices of consumer goods and services was
employed. The results obtained for the whole sample (1990-2006) support Kashyaps hypothesis that
the price elasticity is a function of inflation: the calculated probability of the price change was much
higher in the first half of the 1990s. Since the 1999, the consumer prices in Poland have been
moderately stable, with the probability o f a price change in the following month being 11.3%, and the
mean time of the prices remaining unchanged averaging 8 months.
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Citation
Ruch Prawniczy, Ekonomiczny i Socjologiczny 69, 2007, z. 3, s. 145-157.
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0035-9629