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Precautionary price stickiness

  • Anton Nakov

    (Bank of Spain)

  • James Costain

    (Bank of Spain)

In ongoing work, we are also estimating a generalized model in which both the price chosen, and the decision of whether or not to adjust the price, are subject to logit errors. This should allow us to distinguish whether intermittent adjustment is driven primarily by a risk of errors or by stickiness per se.

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Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 774.

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Date of creation: 2010
Date of revision:
Handle: RePEc:red:sed010:774
Contact details of provider: Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA
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