This paper compares sticky-price and sticky-information model under a more general staggering price-setting scheme … that, without strategic complementarity in the price-setting, two models generate similar inflation dynamics. The … distribution of price durations dominates the shape of impulse response in both models. Furthermore, with strategic complementarity …

the steady-state distribution of price adjustments in microdata; realism calls for firm-specific shocks. Computing a …

herein indicates that high rates of inflation lead to less price stickiness and, hence, less persistent output fluctuations …

In the recent New Keynesian literature a standard assumption is that the price for which an intermediate good is sold … that this need not to hold. This paper introduces price bargaining into an otherwise standard New Keynesian DSGE model and … ; Price Bargaining. …

bought for a large number of goods, in addition to consumer characteristics, we provide estimates of price elasticities of … demand and on the degree of demand-side real rigidities. We find that price elasticites of demand are about 4 in the median …

Macroeconomists have traditionally ignored the behavior of temporary price markdowns ("sales") by retailers. Although … sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered … out. We challenge this view. First, using the 1996 - 2012 data set of the U.K. CPI monthly price quotes, we document a …

In the data, prices change both temporarily and permanently. Standard Calvo models focus on permanent price changes and … them as permanent. We provide a menu cost model that includes motives for both types of price changes. Since this model … accounts for the main regularities of price changes, its predictions for the real effects of monetary policy shocks are useful …

We study the effects of monetary shocks in a model of state-dependent price and wage adjustment based on “control costs … adjustments. Our simulations are calibrated to microdata on the size and frequency of price and wage changes. Money shocks have … wage rigidity, rather than price rigidity. State-dependent nominal rigidity implies a flatter Phillips curve as trend …