Gerlach, Stefan; Kugler, Peter - 2007
We test the menu cost model of Ball and Mankiw (1994, 1995), which implies that the impact of price dispersion on … inflation should differ between inflation and deflation episodes, using data for Japan and Hong Kong. We use a random cross …-section sample split when calculating the moments of the distribution of price changes to mitigate the small-cross-sectionsample bias …