Price Stickiness: Empirical Evidence of the Menu Cost Channel
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 co...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
| Published: |
MIT Press
2015
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| Online Access: | http://hdl.handle.net/1721.1/100494 https://orcid.org/0000-0003-2758-0116 |