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Price rigidity and flexibility: recent theoretical developments Author info | Abstract | Publisher info | Download info | Related research | Statistics Daniel Levy (Bar-Ilan University, Ramat-Gan, Israel)
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The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system, therefore, have fundamental implications for many key issues in microeconomics and industrial organization, as well as in macroeconomics and monetary economics. In microeconomics, managerial economics, and industrial organization, economists focus on the price system efficiency. In macroeconomics and monetary economics, economists focus on the extent to which nominal prices fail to adjust to changes in market conditions. Nominal price rigidities play a particularly important role in modern monetary economics and in the conduct of monetary policy because of their ability to explain short-run monetary non-neutrality. The behaviour of prices, and in particular the extent of their rigidity and flexibility, therefore, is of central importance in economics. This introductory essay briefly summarizes the eight studies of price rigidity that are included in this special issue. Copyright © 2007 John Wiley & Sons, Ltd.
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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics .
Volume (Year): 28 (2007)
Issue (Month): 6 ()
Pages: 523-530
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Handle: RePEc:wly:mgtdec:v:28:y:2007:i:6:p:523-530Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: N. Gregory Mankiw & Ricardo Reis, 2002.
"Sticky Information Versus Sticky Prices: A Proposal To Replace The New Keynesian Phillips Curve ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 117(4), pages 1295-1328, November.
[Downloadable!] (restricted)
Other versions:
N. Gregory Mankiw & Ricardo Reis, 2001.
"Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve ,"
Harvard Institute of Economic Research Working Papers
1922, Harvard - Institute of Economic Research.
[Downloadable!] N. Gregory Mankiw & Ricardo Reis, 2001.
"Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve ,"
NBER Working Papers
8290, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) N. Gregory Mankiw & Ricardo Reis, 2001.
"Sticky information versus sticky prices: a proposal to replace the New-Keynesian Phillips Curve ,"
Proceedings ,
Federal Reserve Bank of San Francisco, issue Jun.
[Downloadable!] Mankiw, N Gregory, 2001.
"The Inexorable and Mysterious Tradeoff between Inflation and Unemployment ,"
Economic Journal ,
Royal Economic Society, vol. 111(471), pages C45-61, May.
[Downloadable!] (restricted)
Other versions: Daniel Levy & Mark Bergen & Shantanu Dutta & Robert Venable, 2005.
"The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains ,"
Macroeconomics
0505012, EconWPA.
[Downloadable!]
Other versions: Daniel Levy & Shantanu Dutta & Mark Bergen, 2004.
"Heterogeneity in Price Rigidity: Evidence from a Case Study Using Micro-Level Data ,"
Macroeconomics
0402021, EconWPA.
[Downloadable!]
Other versions:
Levy, Daniel & Dutta, Shantanu & Bergen, Mark, 2002.
"Heterogeneity in Price Rigidity: Evidence from a Case Study Using Microlevel Data ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 34(1), pages 197-220, February.
Young, Andrew & Levy, Daniel, 2006.
"Explicit Evidence on an Implicit Contract ,"
MPRA Paper
926, University Library of Munich, Germany.
[Downloadable!]
Other versions: Akerlof, George A & Yellen, Janet L, 1985.
"Can Small Deviations from Rationality Make Significant Differences to Economic Equilibria? ,"
American Economic Review ,
American Economic Association, vol. 75(4), pages 708-20, September.
[Downloadable!] (restricted)
Wai-Yip Alex Ho & James Yetman, 2007.
"The real effects of inflation in continuous versus discrete time sticky price models ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(6), pages 633-638.
[Downloadable!]
James Yetman, 2007.
"Explaining hump-shaped inflation responses to monetary policy shocks ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(6), pages 605-617.
[Downloadable!]
Gadi Fibich & Arieh Gavious & Oded Lowengart, 2007.
"Optimal price promotion in the presence of asymmetric reference-price effects ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(6), pages 569-577.
[Downloadable!]
Gil S. Epstein, 2007.
"Production, inventory and waiting time ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(6), pages 579-589.
[Downloadable!]
Mark Zbaracki & Mark Ritson & Daniel Levy & Shantanu Dutta & Mark Bergen, 2004.
"Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets ,"
Macroeconomics
0402020, EconWPA.
[Downloadable!]
Other versions: Daniel Levy & Shantanu Dutta & Mark Bergen & Robert Venable, 2005.
"Price Adjustment at Multiproduct Retailers ,"
Industrial Organization
0505005, EconWPA.
[Downloadable!]
Other versions: Dennis W. Carlton, 1983.
"Equilibrium Fluctuations When Price and Delivery Lag Clear the Market ,"
Bell Journal of Economics ,
The RAND Corporation, vol. 14(2), pages 562-572, Autumn.
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Bernanke, Ben & Gertler, Mark, 1995.
"Inside the Black Box: The Credit Channel of Monetary Policy Transmission ,"
Working Papers
95-15, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
Other versions:
Ben S. Bernanke & Mark Gertler, 1995.
"Inside the Black Box: The Credit Channel of Monetary Policy Transmission ,"
NBER Working Papers
5146, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Bernanke, Ben S & Gertler, Mark, 1995.
"Inside the Black Box: The Credit Channel of Monetary Policy Transmission ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 9(4), pages 27-48, Fall.
[Downloadable!] (restricted) Mankiw, N Gregory, 1985.
"Small Menu Costs and Large Business Cycles: A Macroeconomic Model ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 100(2), pages 529-38, May.
[Downloadable!] (restricted)
Sheshinski, Eytan & Weiss, Yoram, 1977.
"Inflation and Costs of Price Adjustment ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 44(2), pages 287-303, June.
[Downloadable!] (restricted)
Alexander L. Wolman, 2000.
"The frequency and costs of individual price adjustments ,"
Economic Quarterly ,
Federal Reserve Bank of Richmond, issue Fall, pages 1-22.
[Downloadable!]
Other versions: Daniel Levy, 2006.
"Price Rigidity and Flexibility: New Empirical Evidence ,"
Emory Economics
0611, Department of Economics, Emory University (Atlanta).
[Downloadable!]
Other versions:
Levy, Daniel, 2007.
"Price Rigidity and Flexibility: New Empirical Evidence ,"
MPRA Paper
2762, University Library of Munich, Germany.
[Downloadable!] Daniel Levy, 2007.
"Price rigidity and flexibility: new empirical evidence ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(7), pages 639-647.
[Downloadable!] Akerlof, George A & Yellen, Janet L, 1985.
"A Near-rational Model of the Business Cycle, with Wage and Price Intertia ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 100(5), pages 823-38, Supp..
[Downloadable!] (restricted)
Calvo, Guillermo A., 1983.
"Staggered prices in a utility-maximizing framework ,"
Journal of Monetary Economics ,
Elsevier, vol. 12(3), pages 383-398, September.
[Downloadable!] (restricted)
Dutta, Shantanu, et al, 1999.
"Menu Costs, Posted Prices, and Multiproduct Retailers ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 31(4), pages 683-703, November.
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Georg Müller & Mark Bergen & Shantanu Dutta & Daniel Levy, 2007.
"Non-price rigidity and cost of adjustment ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(7), pages 817-832.
[Downloadable!]
Daniel Levy, 2007.
"Price rigidity and flexibility: new empirical evidence ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(7), pages 639-647.
[Downloadable!]
Other versions:
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