In this article, we study how the economic environment for firms in the service sector affects their price adjustments … addition to studying price setting determinants in the service sector, we show that behavior is consistent with both state and … time-dependent price setting models. By estimating a state-dependent pricing model augmented by variables that indicate the …

inflation, in which only the intensive margin (the size of price increases) adjusts in response to changes in demand and supply …? We would like to emphasize that our highly disaggregated consumer price data for the Euro area, consisting of 280 … commodity categories, strongly suggests that price increases (inflation) are influenced not only by aggregate trends but also by …

competing products, the price of individual products tends to fall over the product lifetime. This holds true for more than 90 …% of the expenditure items underlying the U.K. consumer price index and has important normative implications. Constructing … a sticky price model featuring a product life cycle and rich amounts of heterogeneity, we explain how the optimal in …

We present a sticky-price model incorporating heterogeneous firms and systematic firm-level productivity trends … canonical sticky price models featuring homogenous firms: (1) the optimal steady-state inflation rate generically differs from …

Price setting has become more flexible following a string of large adverse shocks (Covid-19, the Ukraine War). We argue … idea in a general equilibrium model with endogenous price flexibility and entry-exit. Faced with higher productivity …

price information to consumers depends on how well informed they are beforehand. Theoretically, an increase in consumer … information decreases prices more, the fewer ex ante informed consumers there are. Empirically, we study mandatory price …

2010-2019, we document new findings on consumer price rigidity in the euro area: (i) each month on average 12.3% of prices … change, which compares with 19.3% in the United States; when we exclude price changes due to sales, however, the proportion … of prices adjusted each month is 8.5% in the euro area versus 10% in the United States; (ii) differences in price …

We empirically identify the effect of inflation on relative price distortions, using a novel identification approach … derived from sticky price theories with time or state-dependent adjustment frictions. Our approach can be directly applied to … micro price data, does not rely on estimating the gap between actual and flexible prices, and only assumes stationarity of …

expected price changes collected by the Confederation of British Industry. Our microeconometric approach overcomes the … price-setting behaviour, with a coefficient on firm's expectations consistent with the discount factor typically assumed in …