WORKING PAPER SERIES NO 1168 / APRIL 2010 FOOD PRICE PASS-THROUGH IN THE EURO AREA THE ROLE OF ASYMMETRIES AND NON-LINEARITIES by Gianluigi Ferrucci Rebeca Jiménez-Rodríguez and Luca Onorante WORKING PAPER SERIES NO 1168 / APRIL 2010 FOOD PRICE PASS-THROUGH IN THE EURO AREA THE ROLE OF ASYMMETRIES AND NON-LINEARITIES 1 by Gianluigi Ferrucci 2 , Rebeca Jiménez-Rodríguez 3 and Luca Onorante 4 NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. In 2010 all ECB publications feature a motif taken from the €500 banknote. This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1578209. 1 The views expressed in this paper are those of the authors and do not necessarily reflect those of the European Central Bank, its Governing Council or the Eurosystem. The authors wish to thank Hans-Joachim Klöckers, Angela Maddaloni, José Marín Arcas, Aidan Meyler, Julian Morgan, an anonymous referee and participants at an internal ECB seminar for their valuable comments, suggestions and discussions. All remaining errors are the sole responsibility of the authors. 2 Corresponding author: European Central Bank, Kaiserstrasse 29, D-60311, Frankfurt am Main, Germany; Tel.: +49 69 1344 5714; Fax: +49 69 1344 7602; e-mail:
[email protected] 3 Department of Economics, University of Salamanca, Campus Miguel de Unamuno, E-37007, Salamanca, Spain; Tel.: +34 923 29 46 40 (ext.