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Precautionary price stickiness

Author

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  • Anton Nakov

    (Bank of Spain)

  • James Costain

    (Bank of Spain)

Abstract

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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  • Anton Nakov & James Costain, 2010. "Precautionary price stickiness," 2010 Meeting Papers 774, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:774
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    1. Precautionary price stickiness
      by Christian Zimmermann in NEP-DGE blog on 2011-09-08 08:03:46

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    3. James Costain & Anton Nakov, 2019. "Logit Price Dynamics," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(1), pages 43-78, February.
    4. Bo E. Honoré & Daniel Kaufmann & Sarah Lein, 2012. "Asymmetries in Price‐Setting Behavior: New Microeconometric Evidence from Switzerland," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(s2), pages 211-236, December.
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    6. Luo, Shaowen & Villar, Daniel, 2021. "The price adjustment hazard function: Evidence from high inflation periods," Journal of Economic Dynamics and Control, Elsevier, vol. 130(C).

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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