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Replication data for: Inflation Dynamics during the Financial Crisis

Resource Type
  • Gilchrist, Simon
  • Schoenle, Raphael
  • Sim, Jae
  • Zakrajšek, Egon
Publication Date
  • Abstract

    Using a novel dataset, which merges good-level prices underlying the PPI with the respondents' balance sheets, we show that liquidity constrained firms increased prices in 2008, while their unconstrained counterparts cut prices. We develop a model in which firms face financial frictions while setting prices in customer markets. Financial distortions create an incentive for firms to raise prices in response to adverse financial or demand shocks. This reaction reflects the firms' decisions to preserve internal liquidity and avoid accessing external finance, factors that strengthen the countercyclical behavior of markups and attenuate the response of inflation to fluctuations in output.
  • Is supplement to
    DOI: 10.1257/aer.20150248 (Text)
  • Gilchrist, Simon, Raphael Schoenle, Jae Sim, and Egon Zakrajšek. “Inflation Dynamics during the Financial Crisis.” American Economic Review 107, no. 3 (March 2017): 785–823.
    • ID: 10.1257/aer.20150248 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Gilchrist, Simon; Schoenle, Raphael; Sim, Jae; Zakrajšek, Egon (2017): Replication data for: Inflation Dynamics during the Financial Crisis. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.