A model that contains no costs to changing prices but in which prices do not respond to nominal shocks is presented. In … equilibrium in which sticky prices are supported without menu costs is then constructed. In equilibrium firms choose to keep … prices fixed in response to nominal shocks because doing so provides a service to their customers, increasing profits by …

.S. cities and Canadian cities for 14 categories of consumer prices to examine the nature of the deviations from the law of one … price. The distance between cities explains a significant amount of the variation in the prices of similar goods in … prices as adding 2500 miles between cities. …

-optimal equilibrium that would occur under completely flexible wages and prices; that is, the model exhibits a tradeoff between … stabilizing the output gap, price inflation, and wage inflation. The Pareto optimum is attainable only if either wages or prices …

of scale. ; I find that the impact of import prices on domestic prices varies substantially by industry, with …I use disaggregated U.S. data from 1978 to 1988 to examine the impact of changes in the prices of imported manufactured … goods on corresponding domestic prices--the "competing goods effect." I use an econometric specification which allows for …

even though firms in the model reoptimize prices on average once every 1.8 quarters. The key feature of our model … traded in economy-wide rental markets, we find that firms reoptimize their prices on average once every 9 quarters. We argue …

patterns in export prices at the level of products or firms. In this paper, a unified theoretical framework of firm … heterogeneity in cost and quality is brought to bear on an expansive data set of U.S. import transaction prices collected by the …

within an MSA. The resulting price indexes show a dramatic increase in both commercial and residential land prices over … several years prior to their peak in 2006-07 and a steep descent since then. These fluctuations in land prices are … considerably larger than those in well-known indexes of commercial real estate and house prices. Because those existing indexes …