Inventories, Markups, and Real Rigidities in Menu Cost Models
We examine the general equilibrium implications of an Aguirregabiria (1999) - type economy, in which firms are subject to fixed cost of price- and inventory-adjustment that is capable of generating infrequent orders and price changes observed in the data. We ask whether the model can account for patterns of temporal price variation, frequency of stockouts, etc. in the micro data and study the response of real activity to monetary disturbances in an otherwise standard (S,s) setup.
Year of publication: |
2008
|
---|---|
Authors: | Midrigan, Virgiliu ; Kryvtsov, Oleksiy |
Institutions: | Society for Economic Dynamics - SED |
Saved in:
Saved in favorites
Similar items by person
-
Investment and the Real Interest Rate in Business Cycle Models
Midrigan, Virgiliu, (2009)
-
Information Flows and Aggregate Persistence
Kryvtsov, Oleksiy, (2007)
-
“Lumpy Trade and the Price of Imports in Large Devaluations.”
Midrigan, Virgiliu, (2007)
- More ...