Can more frequent price changes lead to price inertia? Nonneutralities in a state-dependent pricing contest

• 成果类型: Article
• 署名作者: Conlon, JR; Liu, CY
• 署名单位: National Taiwan University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.2307/2527221
• 发表日期: 1997
• 页码: 893-914
• 关键词: menu costs; DYNAMICS; output; MODEL; money

摘要

We present a generalized (s,S) state-dependent pricing model in which menus are changed, not just in response to price misalignment, but also in response to factors such as changing product mix. Our model generates aggregate price inertia, and so reverses an important earlier result on neutrality in state-dependent pricing contexts in more general settings than previous modifications. It also provides a compromise between state-and time-dependent rules, gives a glimpse at the dynamic implications of menu cost models, and reproduces two recent results: one on Phillips curve slopes, and one on asymmetric fluctuations.