Price Adjustment Lags and Their Asymmetries in Vietnam

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dc.contributor.authorPham, Anh
dc.contributor.authorNguyen, Hoang
dc.contributor.authorNguyen, Hung
dc.date.accessioned2019-03-12T18:36:27Z
dc.date.available2019-03-12T18:36:27Z
dc.date.issued2017-10-19
dc.descriptionPre-print of a journal articleen_US
dc.description.abstractThe paper aims to investigate factors that influence the speed of price adjustment in response to shocks by Vietnamese firms using a multivariate ordered probit model with survey data. The results first indicate that whether state or time-dependent price reviewing causes firms to adjust their prices faster after shocks may depend critically on not only the size of shocks but also the economic conditions. Second, we provide evidence that firms used the rule of thumb in price setting tend to adjust their prices more slowly in response to all kind of shocks than their counterparts who based on the market conditions, and that firms whose prices are influenced by competitors tend to be more flexible in reaction to shocks. In addition, we find that menu costs and contracts are the two most important theories in explaining price stickiness. However, they seem to induce firms to respond more slowly only to shocks that drive prices downwards, rather than to shocks that move prices upwards. Finally, the degree of competition, the market share, the size of firms, the practice of quantity discounts, the share of state ownership, and the sector where firms operate all matter for how quickly and asymmetrically firms react to shocks. Keywords: Price adjustment; survey data; multivariate ordered probit;en_US
dc.description.sponsorshipJEL codes: D40; E31en_US
dc.description.urihttps://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnx0aGVhbmg5ODJ8Z3g6NmE4NDA2ZTA3MTdlMGRmZAen_US
dc.format.extent17 pagesen_US
dc.genrejournal articleen_US
dc.identifierdoi:10.13016/m2mxnf-eioh
dc.identifier.citationPham, A. T., Nguyen, H. H., & Nguyen, H. D. (2017, October 19). Price Adjustment Lags And Their Assymetries In Vietnam. Retrieved from https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnx0aGVhbmg5ODJ8Z3g6NmE4NDA2ZTA3MTdlMGRmZAen_US
dc.identifier.urihttp://hdl.handle.net/11603/13019
dc.language.isoen_USen_US
dc.publisherThe Anh Phamen_US
dc.relation.isAvailableAtUniversity of Baltimore
dc.subjecteconomicsen_US
dc.subjectVietnamen_US
dc.subjectprice adjustmentsen_US
dc.titlePrice Adjustment Lags and Their Asymmetries in Vietnamen_US
dc.typeTexten_US

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