@TechReport{iza:izadps:dp13568,
            	author={Balleer, Almut and Link, Sebastian and Menkhoff, Manuel and Zorn, Peter},
            	title={Demand or Supply? Price Adjustment during the COVID-19 Pandemic},
            	year={2020},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={13568},
            	url={https://www.iza.org/publications/dp13568},
	abstract={We study price-setting behavior in German firm-level survey data to infer the relative importance of supply and demand during the Covid-19 pandemic. Supply and demand forces coexist, but demand shortages dominate in the short run. A reported negative impact of Covid-19 on current business is associated with a rise in the probability to decrease prices up to eleven percentage points. These results imply a role for aggregate demand stabilization policy to buffer the economic consequences of Covid-19 while containing the pandemic.},
	keywords={producer price setting;supply;demand;COVID-19;fiscal policy},
            }