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Precautionary price stickiness

Author Info

Listed author(s):
  • 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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File URL: https://economicdynamics.org/meetpapers/2010/paper_774.pdf
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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
Handle: RePEc:red:sed010:774
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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Find related papers by 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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  1. Precautionary price stickiness
    by Christian Zimmermann in NEP-DGE blog on 2011-09-08 03:03:46
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Cited by:

  1. James Costain & Anton Nakov, 2013. "Logit price dynamics," Working Papers 1301, Banco de España;Working Papers Homepage.
  2. 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, pages 211-236, December.

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