Tables 1 and 2 below are drawn from the article by Bunn P,. Ellis C., (2012), “How do individual UK producer prices behave?”, The Economic Journal, 122, 558, F16 – F34 The aim of the research is to investigate the frequency with which UK producer prices change. In order to carry out their investigation the researchers use microdata that underpin the UK Producer Prices Index collected each month by the Office for National Statistics.Why is this research of interest for macroeconomists in general and UK policy makers in particular? Table 1. Distribution of number of months between UK producer prices change per itemPercentage of Items1411210-2-0≥1 and <2≥3 and <4HA25 and <6≥7 and <8≥9 and <10≥11 and <12≥13 and <14≥15 and <16≥17 and <18≥19 and <20≥21 and <22≥23 and <24Table 2. Percentage of producer prices that change each month by product groupAll changes (UK) Increases (UK) Decreases (UK)86.927.113.115.625.418.8Energy productsConsumer food productsConsumer non-food non-durablesConsumer durablesIntermediate goodsCapital goodsNote. Euro-area data are taken from Vermeulen et al. (2007).56.315.27.69.515.211.030.612.05.56.110.27.8All changes(euro area)2211297210

Research is an efficient investigation into a theme to expand information, understanding, or take…

Answered: Tables 1 and 2 below are drawn from the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 7SCQ: What would the gasoline price elasticity of supply mean to UPS or FedEx?

See similar textbooks

Related questions

Question

Tables 1 and 2 below are drawn from the article by Bunn P,. Ellis C., (2012), “How do individual UK producer prices behave?”, The Economic Journal, 122, 558, F16 – F34

The aim of the research is to investigate the frequency with which UK producer prices change. In order to carry out their investigation the researchers use microdata that underpin the UK Producer Prices Index collected each month by the Office for National Statistics.

Why is this research of interest for macroeconomists in general and UK policy makers in particular?

Table 1. Distribution of number of months between UK producer prices change per item
Percentage of Items
141
12
10-
2-
0
≥1 and <2
≥3 and <4
HA
25 and <6
≥7 and <8
≥9 and <10
≥11 and <12
≥13 and <14
≥15 and <16
≥17 and <18
≥19 and <20
≥21 and <22
≥23 and <24
Table 2. Percentage of producer prices that change each month by product group
All changes (UK) Increases (UK) Decreases (UK)
86.9
27.1
13.1
15.6
25.4
18.8
Energy products
Consumer food products
Consumer non-food non-durables
Consumer durables
Intermediate goods
Capital goods
Note. Euro-area data are taken from Vermeulen et al. (2007).
56.3
15.2
7.6
9.5
15.2
11.0
30.6
12.0
5.5
6.1
10.2
7.8
All changes
(euro area)
221129
72
10

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

explain at least two reasons that, according to economic theory, might prevent business from changing prices more frequently.

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions