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Price Discounts and Cheapflation during the Post-Pandemic Inflation Surge
Read more: Price Discounts and Cheapflation during the Post-Pandemic Inflation SurgeAlberto Cavallo and Oleksiy Kryvtsov We study how within-store price variation changes with inflation, and whether households exploit it to attenuate the inflation burden. We use micro price data for food products sold by 91 large multi-channel retailers in ten countries between 2018 and 2024. Measuring unit prices within narrowly defined product categories, we analyze…
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Markups and Cost Pass-through Along the Supply Chain
Read more: Markups and Cost Pass-through Along the Supply ChainSantiago Alvarez-Blaser, Alberto Cavallo, Alexander MacKay, Paolo Mengano We study markups and pricing strategies along the supply chain. Our unique dataset combines detailed price and cost information from a large global manufacturer with matched retail prices collected online for the period July 2018 through June 2023. We show that total markups—reflecting the difference between retail…
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Large Shocks Travel Fast
Read more: Large Shocks Travel FastAlberto Cavallo, Francesco Lippi and Ken Miyahara We leverage the inflation upswing of 2022 and various granular datasets to identify robust price-setting patterns following a large supply shock. We show that the frequency of price changes increases dramatically after a large shock. We set up a parsimonious New Keynesian model and calibrate it to fit…
Research
