Research Discussion Paper – RDP 9502 Price Stickiness and Inflation

Contents

• Introduction
• Australian Industry Price Data
• The Ball – Mankiw Analysis
• Testing the Ball-Mankiw Model with industry price data
• Conclusions
• Data appendix
• Appendix 1: Statistical test: Are price falls special?
• Appendix 2: The Ball-Mankiw Model
• References

We are grateful to seminar participants at the Reserve Bank, A.N.U., Bond University, Melbourne University, 1994 Conference of Economists and to Palle Andersen, Laurence Ball and Bill Russell for helpful comments. All remaining errors are our own. The views expressed are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.