TIME RIGIDITIES IN THE ADJUSTMENT OF PRICES TO MONETARY SHOCKS: AN ANALYSIS OF MICRO DATA

Benjamin Eden ()

No 1994.16, Bank of Israel Working Papers from Bank of Israel

Abstract: A store that increases the nominal price of a given good by more than other stores will tend to wait longer before it increases its nominal price again, but only by as much as 15% of the additional time interval predicted by models which assume fixed menu-type costs for changing nominal prices. This finding is based on large data sets of prices by products and stores during recent inflationary periods in Israel. It suggests that coordination-type costs are important relative to menu-type costs.

Pages: 26 pages
Date: 1994-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_1994.16.pdf First version, 1994 (application/pdf)

Related works:
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:boi:wpaper:1994.16

Access Statistics for this paper

More papers in Bank of Israel Working Papers from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().