This paper studies a general-equilibrium model of a dynamic economy with menu costs. Each firm's productivity is exposed to idiosyncratic and aggregate productivity shocks around a trend, and the money supply to monetary shocks around a trend. All consumption, pricing, and production decisions...

In this paper we extend the Becker-Keeley and Bergstrom-Bagnoli theories of the optimal age at marriage and derive systematic cross-cultural differences in the marriage pattern. We then examine the empirical relevance of the hypotheses for Jewish and Moslem population groups in Israel. The...

A vast literature analyzes the real effects of price-adjustment costs assuming that quantity adjustments are costless. In this paper, we analyze whether the presence of quantity-adjustments costs, which presumably are significant, change the traditional results on the impact of inflation. In...