How Frequent Are Small Price Changes?

Martin Eichenbaum · Nir Jaimovich · Sergio Tavares Rebelo · Josephine Smith

100 citations0/0 files storedAmerican Economic Journal Macroeconomics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Monetary Policy and Economic Impact Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing

Abstract

Recent empirical work suggests that small price changes are relatively common. This evidence has been used to criticize classic menu-cost models. In this paper, we use scanner data from a national supermarket chain and micro data from the Consumer Price Index to reassess the importance of small price changes. We argue that the vast majority of these changes are due to measurement error. We conclude that the evidence on the prevalence of small price changes is much too weak to be used as a litmus test of nominal rigidity models. (JEL C82, E31, L11, L81)

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 100 citations exist upstream.

References

2003Implications of rational inattention 2002Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve 2004Some Evidence on the Importance of Sticky Prices 2008Five Facts about Prices: A Reevaluation of Menu Cost Models *2002Some Evidence on the Importance of Sticky Prices 1985Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly 1982Monopolistic Price Adjustment and Aggregate Output 2009Optimal Sticky Prices under Rational Inattention

Cited by

2014Multiproduct firms and price-setting: Theory and evidence from U.S. producer prices 2019Menu Costs, Aggregate Fluctuations, and Large Shocks 2013Price Rigidity: Microeconomic Evidence and Macroeconomic Implications 2022More Than a Penny’s Worth: Left-Digit Bias and Firm Pricing 2022New Facts on Consumer Price Rigidity in the Euro Area 2015Scraped Data and Sticky Prices

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.