The Cyclicality of Sales, Regular and Effective Prices: Business Cycle and Policy Implications: Reply

S-Tier
Journal: American Economic Review
Year: 2019
Volume: 109
Issue: 1
Pages: 314-24

Authors (3)

Olivier Coibion (not in RePEc) Yuriy Gorodnichenko (University of California-Berke...) Gee Hee Hong (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We address how using different censoring thresholds and imputation procedures affects the baseline results of Coibion, Gorodnichenko, and Hong (2015). Higher censoring thresholds introduce measurement error and outliers that generate wide variability in results across weighting schemes, but methods that explicitly control for outliers confirm the results of Coibion et al. (2015) for all censoring thresholds. We also illustrate how the BLS's approach to imputing missing prices can introduce a cyclical bias into measures of posted price inflation when store-switching is present in the data.

Technical Details

RePEc Handle
repec:aea:aecrev:v:109:y:2019:i:1:p:314-24
Journal Field
General
Author Count
3
Added to Database
2026-01-25