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Equality of Demand and Supply Neither Determines Price Nor Clears the Market

Gani, Mohammad - EconWPA - 2004

) monetary theory, which claims that equality of demand and supply is necessary but not sufficient to clear the market. In … indirect trade, money also must be used. Micro says that price is equal to marginal cost, rejecting trade theory’s claim that … trade is gainful. To remove these and other contradictions, price theory must be repaired. Money’s role in market clearing …

Persistent link: https://www.econbiz.de/10005413280

A Simple Model of Keynesian Unemployment

Nakajima, Tetsuya - EconWPA - 2005

Constructing a general equilibrium model which compactly incorporates the markets for outputs, labor, money, and equities, we examine equilibrium unemployment. While a mechanism of an efficiency wage brings about nominal wage rigidity, unemployment occurring in our model definitely has Keynesian...

Persistent link: https://www.econbiz.de/10005076693

Wage Regimes, Accumulation and Finance Constraints: Keynesian Unemployment Revisited

Saraceno, Francesco - EconWPA - 2003

This paper presents a sequential model suited to analyze transitions between equilibria. Disequilibrium dynamics are obtained from a standard monopolistic competition model, by introducing a sequential structure and reasonable hypotheses about technology, finance constraints, expectation...

Persistent link: https://www.econbiz.de/10005126351

Local Interactions and Global Persistence

Oomes, Nienke A. - EconWPA - 2000

This paper studies the effects of local interactions on the distribution of employment in a Keynesian-type model with strategic complementarities. It is shown that rational expectations generate symmetric equilibria for any interaction structure except autarky. Under adaptive expectations, the...

Persistent link: https://www.econbiz.de/10005126459

"The Real Thing:" Nominal Price Rigidity of the Nickel Coke, 1886-1959

Levy, Daniel; Young, Andrew - EconWPA - 2004

We report that the price of a 6.5oz Coke was 5¢ from 1886 until 1959. Thus, we are documenting a nominal price rigidity that lasted more than 70 years! The case of Coca-Cola is particularly interesting because during the 70-year period there were substantial changes in the soft drink industry...

Persistent link: https://www.econbiz.de/10005412575

The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains

Levy, Daniel; Bergen, Mark; Dutta, Shantanu; Venable, Robert - EconWPA - 2005

We use store-level data to document the exact process of changing prices and to directly measure menu costs at five multi-store supermarket chains. We show that changing prices in these establishments is a complex process, requiring dozens of steps and a nontrivial amount of resources. The menu...

Persistent link: https://www.econbiz.de/10005412630

Explicit Evidence on an Implicit Contract

Young, Andrew; Levy, Daniel - EconWPA - 2005

We offer the first direct evidence of an implicit contract in a goods market. The evidence we offer comes from the market for Coca-Cola. We demonstrate that the Coca-Cola Company left a substantial amount of written evidence of its implicit contract with its consumers—a very explicit form of...

Persistent link: https://www.econbiz.de/10005412684

Heterogeneity in Price Rigidity: Evidence from a Case Study Using Micro-Level Data

Levy, Daniel; Dutta, Shantanu; Bergen, Mark - EconWPA - 2004

We combine two data sets to study price rigidity. The first consists of weekly time series of retail, wholesale, and spot prices for twelve products. These time series contain two exogenous cost shocks. We find that prices exhibit more rigidity in response to the second shock than the first. The...

Persistent link: https://www.econbiz.de/10005412696

Price Adjustment at Multiproduct Retailers

Levy, Daniel; Dutta, Shantanu; Bergen, Mark; Venable, Robert - EconWPA - 2005

We empirically study the price adjustment process at multiproduct retail stores. We use a unique store level data set for five large supermarket and one drugstore chains in the U.S., to document the exact process required to change prices. Our data set allows us to study this process in great...

Persistent link: https://www.econbiz.de/10005412912

Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets

Zbaracki, Mark; Ritson, Mark; Levy, Daniel; Dutta, Shantanu - EconWPA - 2004

We study the price adjustment practices and provide quantitative measurement of the managerial and customer costs of price adjustment using data from a large U.S. industrial manufacturer and its customers. We find that price adjustment costs are a much more complex construct than the existing...

Persistent link: https://www.econbiz.de/10005076839