We examine the frequency of price changes for 350 categories of goods and services covering about 70 % of consumer spending, based on unpublished data from the BLS for 1995 to 1997. Compared with previous studies we find much more frequent price changes, with half of goods' prices lasting less

I develop a general equilibrium model with sticky prices, credit constraints, nominal loans and asset prices. Changes in asset prices modify agents ’ borrowing capacity through collateral value; changes in nominal prices affect real repayments through debt deflation. Monetary policy shocks move

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This paper uses German household data on apparel purchases to show that, con-ditional on income, households di¤er with respect to their shopping outlets and the prices they pay. We estimate that high-price retailers are not a¤ected by changes in import prices. By contrast, the pass-through for low-price

markets: the subtle nature of ‘random’

This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared with the commonly used sticky-price model, this sticky-information model displays three related properties that are more consistent with accepted

This paper provides a simple example of an economy in which equi-librium prices and quantities exhibit what may be the central feature of the modern business cycle: a systematic relation between the rate of change in nominal prices and the level of real output. The relationship,

A firm’s actions in one market can change competitors’ strategies in a second market by affecting its own marginal costs in that other mar-ket. Whether the action provides costs or benefits in the second market depends on (a) whether it increases or decreases marginal costs in the second market

We estimate the relative influence of trade versus technology on wages in a "large country" setting, where technological change affects product prices. Trade is measured by the foreign outsourcing of intermediate inputs, while technological change is measured by expenditures on high

Different theories of price stickiness have distinct implications on the properties of the distribution of price changes. One of those characteristics is the number of modes in the distribution. We formally test for the number of modes in the price change distribution of 32 supermarkets, spanning