PRICE STICKINESS: EMPIRICAL EVIDENCE OF THE MENU COST CHANNEL

• 成果类型: Article
• 署名作者: Anderson, Eric; Jaimovich, Nir; Simester, Duncan
• 署名单位: Northwestern University; Duke University; National Bureau of Economic Research; Massachusetts Institute of Technology (MIT)
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00507
• 发表日期: 2015-10
• 页码: 813-826
• 关键词: multiproduct firms; rise faster; adjustment; inflation; DYNAMICS; MODEL; DISCRIMINATION; money

摘要

A leading explanation in the economic literature is that monetary policy has real effects on the economy because firms incur a cost when changing prices. Using a unique database of cost and retail price changes, we find that variation in menu costs results in up to 13.3% fewer price increases. We confirm that these effects are allocative and have a persistent impact on both prices and unit sales. We provide evidence that the menu cost channel operates only when cost increases are small in magnitude, which is consistent with theory and provides the first empirical evidence of boundary conditions.