The New Keynesian Phillips curve (NKPC) is now the dominant model of inflation dynamics. In recent years, a large body of empirical research has documented price-setting behaviour at the individual level, allowing the assessment of the micro-foundations of pricing models. This paper analyses the...

This paper presents US and euro area estimates for a fully heterogeneous model, in which there is a continuum of firms setting prices with a constant probability of adjustment, which may differ from firm to firm. The estimated model accurately matches the empirical distribution function of...

This paper explores the key features of manufacturing price-setting behaviour in Spain using an extensive micro Producer Price Index data set. The main focus is placed on the impact on the frequency of price adjustment of some explanatory variables, including the cost structure, degree of market...