in option prices. Consumption and dividends remain smooth, and the model is consistent with salient features of …

magazine cover prices. Among the parameters estimated are the mean, variance, and persistence of the adjustment cost process …

information. (2) Firms face heterogeneous, fixed menu costs which they must pay to change prices, leading to state …-dependent sticky prices at the micro level. I estimate key structural parameters and show that a model of sticky prices in a sticky …

prices and wages. Second, the estimated model is used to analyze the welfare properties of various interest rate rules for …

Newspapers, movie tickets, and concession stand items typically charge prices that facilitate rapid, simple … transactions: their prices often coincide with available monetary units, require few pieces of money, or require little change. In … this sense, these prices are more convenient than other proximate prices. I model a firm that explicitly incorporates …

In the U.S. and Europe, prices change somewhere between every six months and once a year. Yet nominal macro shocks seem …