We develop theory and present a suite of theoretically consistent empirical measures to explore the extent to which …

and quite inconsistent empirical support of the theory. More importantly, none of this work addresses important questions …

a large empirical literature from the 1950's and 60's, that it is necessary to distinguish the response of price to an … two models that can potentially explain these findings. Both break the link between price and marginal cost, thereby … second is driven by firms pricing to limit non-price competition within their market …

cause fluctuations in aggregate demand to have real effects are slight. Inefficient price rigidity arises because rigidity … has a negative externality: rigidity in one firm's price increases the variability of real aggregate demand, which hurts …

Thi spaper is concerned with the risk-allocation effects of alternative types of contracts used to set the price of a … good tobe delivered in the future. Under a fixed price contract, the price is specified in advance. Under a spot price … contract, the price is the price prevailing in the spot market at the time of delivery.These contract forms are examined in the …

This paper presents evidence on the amount of price rigidity that exists in individual transaction prices. Using the … important findings are: 1.The degree of price rigidity in many industries is significant. It is not unusual in some industries … commodities, the correlation of price changes across buyers is very low. 3.There is no evidence that there is an asymmetry in …

. We find that the relative importance of contracting depends on, inter alia, the variance of the spot price and the … and price rigidity are more likely the more important demand shocks are relative to supply shocks. We adapt our static … model of contract price and quantity determination to discuss the adjustment of contract prices. Finally, we discuss three …

This paper uses Taylor's model of overlapping contracts to show that increased wage and price flexibility can easily be … prices decreases output. Simulations based on realistic parameter values suggest that increases in price flexibility might …

market structure in which pricing decisions incur costs. That lead producers to pre-set the price path for several periods … expectation equilibrium, characterized by staggered, unsynchronized price setting, for which the degree of staggering is …

today's developing world. Through a simple general equilibrium model, we show that a price squeeze on peasants increases …