Working Less and Bargain Hunting More: Macroimplications of Sales during Japan's Lost Decades

Nao Sudo, Kozo Ueda, Kota Watanabe and Tsutomu Watanabe

Journal of Money, Credit and Banking, 2018, vol. 50, issue 2-3, 449-478

Abstract: Standard New Keynesian models have often neglected temporary sales. In this study, we ask whether this treatment is appropriate. We use Japanese scanner data covering the last two decades and find a negative correlation between the frequency of sales and hours worked. We then construct a model that takes households' decisions regarding their allocation of time for work, leisure, and bargain hunting into account. We show that the decline in hours worked explains the rise in the frequency of sales. The real effect of monetary policy shocks weakens by around 40% due to temporary sales, but monetary policy still matters.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://doi.org/10.1111/jmcb.12467

Related works:
Working Paper: Working Less and Bargain Hunting More:Macro Implications of Sales during Japan's Lost Decades (2014)
Working Paper: Working Less and Bargain Hunting More: Macro Implications of Sales during Japan's Lost Decades (2014)
Working Paper: Working less and bargain hunting more: macro implications of sales during Japan's lost decades (2014)
Working Paper: Working Less and Bargain Hunting More: Macro Implications of Sales during Japan's Lost Decades (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:50:y:2018:i:2-3:p:449-478

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().