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Precautionary price stickiness

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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.

Suggested Citation

  • 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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    5. 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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    8. Gasteiger, Emanuel & Grimaud, Alex, 2023. "Price setting frequency and the Phillips curve," European Economic Review, Elsevier, vol. 158(C).

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    More about this item

    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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