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A theory of wage adjustment under loss aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2014

price. Firms adjust wages flexibly in response to variations in labor demand. The resulting theory of wage adjustment is …We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers … response to small labor demand shocks, (2) wages are downward rigid but upward flexible for medium sized labor demand shocks …

Persistent link: https://www.econbiz.de/10010465159

Pass-through of cost-push shocks

Gödl-Hanisch, Isabel; Menkhoff, Manuel - 2023

relevant for pass-through: beliefs about the expected duration of the shock and its interaction with price rigidities. We then … employ a hypothetical vignette to study the causal effect of nominal and real rigidities as well as the nature of the shock …

Persistent link: https://www.econbiz.de/10014306740

Financial constraints and nominal price rigidities

Balleer, Almut; Hristov, Nikolay; Menno, Dominik - 2017

This paper investigates how financial market imperfections and the frequency of price adjustment interact. Based on new firm-level evidence for Germany, we document that financially constrained firms adjust prices more often than their unconstrained counterparts, both upwards and downwards. We...

Persistent link: https://www.econbiz.de/10011597241

State-dependent or time-dependent pricing? : new evidence from a monthly firm-level survey: 1980-2017

Dixon, Huw; Grimme, Christian - 2019

We take a monthly panel of German firms over the period 1980−2017 to examine the relative importance of time and state dependence in the decisions of firms to raise, lower or leave their price constant. In addition, we seek to estimate the relative importance of macroeconomic factors and...

Persistent link: https://www.econbiz.de/10012103943

Auctions vs. negotiations : the effects of inefficient renegotiation

Herweg, Fabian; Schmidt, Klaus M. - 2015

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex post. We show that this is achieved by bilateral negotiations but not by auctions. Negotiations strictly outperforms auctions if sellers are likely to have superior information...

Persistent link: https://www.econbiz.de/10010496962

Price change synchronization within and between firms

Nilsen, Øivind Anti; Skuterud, Håvard; Munthe-Kaas … - 2021

-firm synchronization is found supporting the theory of economies of scope in menu costs. The industry synchronization effects are found to …

Persistent link: https://www.econbiz.de/10012612687

Monetary policy, price setting, and credit constraints

Balleer, Almut; Zorn, Peter - 2019

We estimate the effects of monetary policy on price-setting behavior in administrative micro data underlying the German producer price index. We find a strong degree of monetary nonneutrality. After expansionary monetary policy, the mass of additional price adjustments is economically small and...

Persistent link: https://www.econbiz.de/10012138873

Generalized Rotemberg price-setting

Reiter, Michael; Wende, Adrian - 2024

We propose a generalized Rotemberg pricing scheme which is able to explain important aspects of the observed nonlinear behavior of price adjustment at the macroeconomic level, such as higher pass-through in response to larger shocks, a positive impact of trend inflation on price flexibility, and...

Persistent link: https://www.econbiz.de/10015051644

Price rigidity and the origins of aggregate fluctuations

Pasten, Ernesto; Schoenle, Raphael; Weber, Michael - 2018 - This version: August 2018

as large as those arising from an aggregate productivity shock. Heterogeneous price rigidity amplifies the aggregate …

Persistent link: https://www.econbiz.de/10011891743

Endogenous product adjustment and exchange rate pass-through

Freitag, Andreas; Lein-Rupprecht, Sarah M. - 2022

We document how product quality responds to exchange rate movements and quantify the extent to which these quality changes affect the aggregate pass-through into export prices. We analyze the substantial sudden appreciation of the Swiss franc post removal of the 1.20-CHF-per-euro lower bound in...

Persistent link: https://www.econbiz.de/10013463278

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