Estimates of Cost-Price Passthrough from Business Survey Data

Wändi Bruine de Bruin (), Keshav Dogra, Sebastian Heise, Edward Knotek, Brent Meyer, Robert Rich, Raphael Schoenle, Giorgio Topa and Wilbert van der Klaauw

No 23-14, Working Papers from Federal Reserve Bank of Cleveland

Abstract: We examine businesses' price-setting practices via open-ended interviews and in a quantitative survey module with business contacts from the Federal Reserve Banks of Atlanta, Cleveland, and New York in December 2022 and January 2023. Businesses indicated that their prices were strongly influenced by demand, a desire to maintain steady profit margins, and wages and labor costs. Survey respondents expected reduced growth in costs and prices of about 5 percent on average over the next year. Backward-looking, forward-looking, and hypothetical scenarios reveal average cost-price passthrough of around 60 percent, with meaningful heterogeneity across firms.

Keywords: Prices; Business Survey; Hypothetical Questions (search for similar items in EconPapers)
JEL-codes: D4 E3 L2 (search for similar items in EconPapers)
Pages: 48
Date: 2023-06-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-202314 Persistent Link (text/html)
https://www.clevelandfed.org/-/media/project/cleve ... pers/2023/wp2314.pdf Full Text (application/pdf)

Related works:
Working Paper: Estimates of Cost-Price Passthrough from Business Survey Data (2023)
Working Paper: Estimates of Cost-Price Passthrough from Business Survey Data (2023)
Working Paper: Estimates of Cost-Price Passthrough from Business Survey Data (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwq:96284

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-202314

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().