Convenient prices, currency, and nominal rigidity: Theory with evidence from newspaper prices

Journal of Monetary Economics

Volumn 55, Issue 7, 2008, Pages 1303-1316

  Knotek II, Edward S ^a  

^a FEDERAL RESERVE BANK OF KANSAS CITY   (United States)

Author keywords

Convenient prices; Menu costs; Newspaper pricing; Price rigidity

Indexed keywords

EID: 55649096867     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2008.07.009     Document Type: Article

References (33)

1. Adda J., and Cooper R. Dynamic Economics: Quantitative Methods and Applications (2003), MIT Press, Cambridge, MA
2. Backman J. The causes of price inflexibility. Quarterly Journal of Economics 54 (1940) 474-489
3. Balke N.S., and Gordon R.J. Appendix B: historical data. In: Gordon R.J. (Ed). The American Business Cycle: Continuity and Change (1986), University of Chicago Press, Chicago 781-850
4. Barro R.J. Integral constraints and aggregation in an inventory model of money demand. Journal of Finance 31 (1976) 77-88
5. Bils M., and Klenow P.J. Some evidence on the importance of sticky prices. Journal of Political Economy 112 (2004) 947-985
6. Blinder A.S., Canetti E.R.D., Lebow D.E., and Rudd J.B. Asking about Prices: A New Approach to Understanding Price Stickiness (1998), Russell Sage Foundation, New York
7. Caplin A.S., and Spulber D.F. Menu costs and the neutrality of money. Quarterly Journal of Economics 102 (1987) 703-725
8. Carvalho C. Heterogeneity in price stickiness and the real effects of monetary shocks. Berkeley Electronic Press Frontiers of Macroeconomics 2 (2006) 1-56
9. Cecchetti S.G. The frequency of price adjustment: a study of newsstand prices of magazines. Journal of Econometrics 31 (1986) 255-274
10. Corden W.M. The maximisation of profit by a newspaper. Review of Economic Studies 20 (1953) 181-190
11. Cornille D., and Stragier T. The euro, five years later: what has happened to prices?. National Bank of Belgium Economic Review 2 (2007) 7-27
12. Deutsche Bundesbank, 2002. Consumer prices and the changeover from deutsche mark to euro. Monthly Report July, 15-24.
13. Dhyne, E., Álvarez, L.J., Le Bihan, H., Veronese, G., Dias, D., Hoffman, J., Jonker, N., Lünnemann, P., Rumler, F., Vilmunen, J., 2004. Price setting in the euro area: some stylised facts from individual consumer price data. Unpublished manuscript.
14. Dutta S., Bergen M., Levy D., and Venable R. Menu costs, posted prices, and multiproduct retailers. Journal of Money, Credit and Banking 31 (1999) 683-703
15. Fisher T.C.G., and Konieczny J.D. Inflation and costly price adjustment: a study of Canadian newspaper prices. Journal of Money, Credit, and Banking 38 (2006) 615-633
16. Folkertsma, C.K., van Renselaar, C., Stokman, A.C.J., 2002. Smooth euro changeover, higher prices? Results of a survey among Dutch retailers. De Nederlandsche Bank Research Memorandum WO no. 682.E.
17. Galbraith J.K. Monopoly power and price rigidities. Quarterly Journal of Economics 50 (1936) 456-475
18. Glatzer E., and Rumler F. Price setting in Austria before and after the euro cash changeover: has anything changed in the last five years?. Austrian Central Bank Monetary Policy and the Economy 1 (2007) 85-99
19. Goffe W.L., Ferrier G.D., and Rogers J. Global optimization of statistical functions with simulated annealing. Journal of Econometrics 60 (1994) 65-99
20. Hoffman, J., Kurz-Kim, J.R., 2006. Consumer price adjustment under the microscope: Germany in a period of low inflation. ECB Working Paper Series No. 652.
21. Kackmeister A.K. Yesterday's bad times are today's good old times: retail price changes are more frequent today than in the 1890s. Journal of Money, Credit and Banking 39 (2007) 1987-2020
22. Kashyap A.K. Sticky prices: new evidence from retail catalogs. Quarterly Journal of Economics 110 (1995) 245-274
23. Knotek E.S., II, 2008. Convenient prices and price rigidity: cross-sectional evidence. Unpublished manuscript.
24. Lee M., Wallace N., and Zhu T. Modeling denomination structures. Econometrica 73 (2005) 949-960
25. Leonard T.C. News for All: America's Coming-of-Age with the Press (1995), Oxford University Press, New York
26. Levy D., and Young A.T. "The real thing": nominal price rigidity of the Nickel Coke, 1886-1959. Journal of Money, Credit and Banking 36 (2004) 765-799
27. Levy D., Bergen M., Dutta S., and Venable R. The magnitude of menu costs: direct evidence from large US supermarket chains. Quarterly Journal of Economics 112 (1997) 791-825
28. Mussa M. Sticky individual prices and the dynamics of the general price level. Carnegie-Rochester Conference Series on Public Policy 15 (1981) 261-296
29. Thompson R.S. Circulation versus advertiser appeal in the newspaper industry: an empirical investigation. Journal of Industrial Economics 37 (1989) 259-271
30. Watkins G.P. Street-railway rates, with especial reference to differentiation. Quarterly Journal of Economics 25 (1911) 623-649
31. Weiss Y. Inflation and price adjustment: a survey of findings from micro data. In: Sheshinski E., and Weiss Y. (Eds). Optimal Pricing, Inflation, and the Cost of Price Adjustment (1993), MIT Press, Cambridge, MA 3-18
32. Willis, J.L., 2000. Estimation of adjustment costs in a model of state-dependent pricing. Federal Reserve Bank of Kansas City Research Working Paper No. 00-07.
33. Willis J.L. Magazine prices revisited. Journal of Applied Econometrics 21 (2006) 337-344