stickiness of prices. Second, the probability of price changes is not constant over time all product categories have declining … hazard functions. Third, the range of price changes is very wide, with some very large price cuts and price rises; but … despite this, a significant number of price changes are very small. Fourth, there appears to be little link between the …

This paper evaluates the predictions of different price setting theories using a new dataset constructed from a large … on both price realizations and expectations. Aggregating the price data we find clear evidence in favor of state …-dependence; for periods of relatively high and volatile inflation not only the size of price changes (intensive margin) but also the …