Empirical Economics

, Volume 49, Issue 3, pp 859–879

Price discovery under crisis: uncovering the determinant factors of prices using efficient Bayesian model selection methods


DOI: 10.1007/s00181-014-0895-6

Cite this article as:
Petralias, A. & Prodromídis, P. Empir Econ (2015) 49: 859. doi:10.1007/s00181-014-0895-6


We seek to uncover the determinants of consumer prices in Greece by considering a large set of potential factors and accounting for delayed effects. To accomplish this, we rely on recently presented Bayesian model selection methods which are efficiently adapted in the present context. Consumer prices drop significantly during the periods of discount sales, especially in the last 2 years; VAT changes are mostly absorbed (above 50 %) by the producers, while a drop in retail sales affects prices with a significant lag (of 6 months). Evidence on the ways several other factors affect prices is also obtained.


Prices Taxes Discount and retail sales variable selection  Population MCMC Subspace Carlin and Chib Greece 

JEL Classification

C11 E31 

Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  • Athanassios Petralias
    • 1
  • Pródromos Prodromídis
    • 2
    • 3
  1. 1.Department of StatisticsAthens University of Economics and BusinessAthensGreece
  2. 2.Centre for Planning and Economic Research (KEPE)AthensGreece
  3. 3.Department of Management Science and TechnologyAthens University of Economics and BusinessAthensGreece

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