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Temporal distribution of individual price changes is of crucial importance for business cycle theory and for the micro-foundations of price adjustment. While it is routinely assumed that price changes are staggered over time, both theory and evidence are ambiguous. We use a large Belgian data...
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Temporal distribution of individual price changes is of crucial importance for business cycle theory and for the micro-foundations of price adjustment. While it is routinely assumed that price changes are staggered over time, both theory and evidence are ambiguous. We use a large Belgian data...
Persistent link: https://www.econbiz.de/10011618131
competitive sectors—separately parameterized to match the same microdata on price flexibility—the oligopoly economy features a … parameters, output responses are five times larger. An oligopoly economy also (i) requires smaller menu costs and idiosyncratic … rationale for positive menu costs: in an oligopoly firms prefer a degree of rigidity to complete flexibility. Quantitatively …
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