Event start date: 12.11.2021 14:00

On 12 November 2021, the National Bank of Ukraine hosted an open research seminar, during which Peter Karadi (ECB) presented a joint paper with Raphael Schoenle and Jesse Wursten "Measuring Price Selection in Micro Data".

Authors use microdata to estimate the strength of price selection – a key metric for the effect of monetary policy on the real economy. Authors propose a product-level proxy for mispricing and assess whether products with larger mispricing respond with a higher probability to identified monetary and credit shocks. Authors find that they do not, suggesting selection is absent. Instead, we detect state-dependent adjustment on the gross extensive margin. Our results are broadly consistent with second-generation state-dependent pricing models and sizable effects of monetary policy on the real economy.

Materials from the seminar are available via links below.