Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms. To guide new theory, we study a unique dataset with comprehensive coverage of daily prices in large...

Price selection is a simple, model-free measure of selection in price setting and its contribu- tion to in ation dynamics. It exploits comovement between in ation and the level from which adjusting prices departed. Prices that increase from lower-than-usual levels tend to push in a- tion above...

We study a unique dataset with comprehensive coverage of daily prices in large multi-product retailers in Israel. Retail stores synchronize price changes around occasional "peak" days when they reprice around 10% of their products. To assess aggregate implications of partial price...

We propose a simple, model-free way to measure price selection and its impact on inflation. Price selection exists when prices that change in response to aggregate shocks are not representative of the overall population of prices. Due to selection, increases (decreases) in inflation can be...

Price selection is a simple, model-free measure of selection in price setting and its contribu- tion to in ation dynamics. It exploits comovement between in ation and the level from which adjusting prices departed. Prices that increase from lower-than-usual levels tend to push in a- tion above...

We study a unique dataset with comprehensive coverage of daily prices in large multi-product retailers in Israel. Retail stores synchronize price changes around occasional "peak" days when they reprice around 10% of their products. To assess aggregate implications of partial price...

We study the purchasing power parity (PPP) puzzle in a multisector, two-country, sticky-price model. Firms’ price stickiness differs across sectors, in accordance with recent microeconomic evidence on price setting in various countries. Combined with local currency pricing, these differences...