Dhyne, Emmanuel; Fuss, Catherine; Pesaran, M. Hashem; … - Institute for the Study of Labor (IZA) - 2007
This paper presents a simple model of state-dependent pricing that allows identification of the relative importance of the degree of price rigidity that is inherent to the price setting mechanism (intrinsic) and that which is due to the price’s driving variables (extrinsic). Using two data...