Abstract
AbstractThis paper uses Hungarian micro‐CPI data between December 2001 and June 2007 to provide descriptive statistics of store‐level pricing practices in Hungary. First we present simple descriptive statistics about the frequency and average size of price changes, and compare it with similar statistics from other countries. Then we decompose the observed variations in the inflation rate to variations in frequencies and sizes. Finally, we estimate the inflation effects of three general VAT‐rate changes during our sample period. Copyright © 2009 John Wiley & Sons, Ltd.
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