Price stickiness in Ss models: New interpretations of old results

Journal of Monetary Economics

Volumn 54, Issue SUPPL., 2007, Pages 100-121

  Caballero, Ricardo J ^a,b   Engel, Eduardo M R A ^b,c  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^b NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

^c YALE UNIVERSITY   (United States)

Author keywords

Adjustment frequency; Adjustment hazard; Aggregate price stickiness; Calvo model; Extensive margin; Generalized Ss model

Indexed keywords

EID: 34547693387     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2007.06.020     Document Type: Article

References (34)

1. Bachmann, R., Caballero, R.J., Engel, E.M.R.A., 2006. Lumpy investment in dynamic general equilibrium. NBER Working Paper No. 12336.
2. Ball L., and Romer D. Real rigidities and the non-neutrality of money. Review of Economic Studies 57 (1990) 193-203
3. Bar-Ilan A., and Blinder A. Consumer durables: evidence on the optimality of usually doing nothing. Journal of Money, Credit and Banking 24 (1992) 258-272
4. Barro R.J. A theory of monopolistic price adjustment. Review of Economic Studies 39 (1972) 17-26
5. Bils M., and Klenow P.J. Some evidence on the importance of sticky prices. Journal of Political Economy 112 (2004) 947-985
6. Burstein A. Inflation and output dynamics with state dependent pricing decisions. Journal of Monetary Economics 53 (2006) 1235-1257
7. Burstein, A., Hellwig, M., 2006. Prices and market shares in a menu-cost model. Mimeo, UCLA.
8. Caballero R.J., and Engel E.M.R.A. Dynamic (S, s) economies. Econometrica 59 (1991) 1659-1686
9. Caballero R.J., and Engel E.M.R.A. Heterogeneity and output fluctuations in a dynamic menu-cost economy. Review of Economic Studies 60 (1993) 95-119
10. Caballero R.J., and Engel E.M.R.A. Microeconomic rigidities and aggregate price dynamics. European Economic Review 37 (1993) 697-711
11. Caballero R.J., and Engel E.M.R.A. Microeconomic adjustment hazards and aggregate dynamics. Quarterly Journal of Economics 108 (1993) 359-383
12. Caballero R.J., and Engel E.M.R.A. Explaining investment dynamics in US manufacturing: a generalized (S, s) approach. Econometrica 67 (1999) 741-782
13. Caballero, R.J., Engel, E.M.R.A., 2006. Price stickiness in Ss models: basic properties. Mimeo, MIT, Yale.
14. Caballero, R.J., Engel, E.M.R.A., 2007. Price stickiness in Ss models: new interpretations for old results. NBER Working Paper No. 12945.
15. Calvo G. Prices in a utility maximizing framework. Journal of Monetary Economics 12 (1983) 383-398
16. Caplin A., and Spulber D. Menu costs and the neutrality of money. Quarterly Journal of Economics 102 (1987) 703-726
17. Carvalho, C., 2006. Heterogeneity in price stickiness and the real effects of monetary shocks. Frontiers of Macroeconomics 2, Article 1.
18. Danziger L. A dynamic economy with costly price adjustments. American Economic Review 89 (1999) 878-901
19. Dhyne E., Alvarez L.J., Bhan H.L., Veronese G., Dias D., Hoffmann J., Jonker N., Lunnemann P., Rumler F., and Vilmunen J. Price setting in the euro area and the United States: some facts from individual consumer price data. Journal of Economic Perspectives 20 (2006) 171-192
20. Dotsey M., and King R.G. Implications of state-dependent pricing for dynamic macroeconomic models. Journal of Monetary Economics 52 (2005) 213-242
21. Dotsey M., King R.G., and Wolman A.L. State dependent pricing and the general equilibrium dynamics of money and output. Quarterly Journal of Economics 114 (1999) 655-690
22. Fabiani S., Druant M., Hernando I., Kwapil C., Landau B., Loupias C., Martins F., Matha T., Sabbatini R., Stahl S., and Stokman A. The pricing behavior of firms in the euro area: new survey evidence. International Journal of Central Banking 2 (2006) 3-47
23. Gertler, M., Leahy, J., 2006. A Phillips curve with an Ss foundation. NBER Working Paper No. 11971.
24. Golosov M., and Lucas R.E. Menu costs and Phillips curves. Journal of Political Economy 115 (2007) 171-199
25. Gorodichenko, Y., 2006. Endogenous information, menu costs and inflation persistence. Mimeo, University of Michigan.
26. Kehoe, P., Midrigan, V., 2007. Sales, clustering of price changes, and the real effects of monetary policy. Mimeo, New York University.
27. Klenow, P.J., Kryvtsov, O., 2005. State-dependent or time-dependent pricing: does it matter for recent U.S. inflation. NBER Working Paper No. 11043.
28. Kleshchelski, I., Vincent, N., 2007. Market share and price rigidity. Mimeo, Northwestern University.
29. Midrigan, V., 2006. Menu costs, multi-product firms, and aggregate fluctuations. Mimeo, New York University.
30. Nakamura, E., Steinsson, J., 2006a. Five facts about prices: a reevaluation of menu cost models. Mimeo, Harvard University.
31. Nakamura, E., Steinsson, J., 2006b. Monetary non-neutrality in a multi-sector menu cost model. Mimeo, Harvard University.
32. Sheshinski, E., Weiss, Y. (Eds.), 1993. Optimum Pricing, Inflation, and the Cost of Price Adjustment. MIT Press, Cambridge, MA.
33. Stokey, N., 2002. Brownian models in economics. Manuscript, University of Chicago.
34. Walters P. An Introduction to Ergodic Theory (1982), Springer, New York