How Frequent Are Small Price Changes?

• 成果类型: Article
• 署名作者: Eichenbaum, Martin; Jaimovich, Nir; Rebelo, Sergio; Smith, Josephine
• 署名单位: Northwestern University; Duke University; New York University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.6.2.137
• 发表日期: 2014
• 页码: 137-155
• 关键词: sticky prices; menu costs; DYNAMICS; adjustment; inflation; retail; money

摘要

Recent empirical work suggests that small price changes are relatively common. This evidence has been used to criticize classic menu-cost models. In this paper, we use scanner data from a national supermarket chain and micro data from the Consumer Price Index to reassess the importance of small price changes. We argue that the vast majority of these changes are due to measurement error. We conclude that the evidence on the prevalence of small price changes is much too weak to be used as a litmus test of nominal rigidity models.