Monopolistic Price Adjustment and Aggregate Output

Julio J. Rotemberg

1,167 citations0/0 files storedThe Review of Economic Studies

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

Economic theories and models Monetary Policy and Economic Impact Economic Theory and Policy

Abstract

This paper studies the consequences for the behaviour of aggregate output of the perception on the part of firms that changing prices is costly. The rational expectations equilibrium of an economy with many such firms is constructed. It is shown that in this economy nominal shocks have a persistent effect on aggregate output. Furthermore, the real wage is demonstrated to move procyclically in such an economy.

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 — 1,167 citations exist upstream.

References

1975MONOPOLISTIC COMPETITION AND OPTIMUM PRODUCT DIVERSITY 1972Expectations and the neutrality of money 1975An Equilibrium Model of the Business Cycle 1977Inflation and Costs of Price Adjustment

Cited by

1986Nominal exchange rate regimes and the behavior of real exchange rates: Evidence and implications 2007The Missing Motivation in Macroeconomics 2006Inattentive Producers 1986The frequency of price adjustment 2002The NAIRU in Theory and Practice 1996Money, Prices, Interest Rates and the Business Cycle 2006Exchange Rates and Monetary Policy in Emerging Market Economies 2010Microeconomic Evidence on Price-Setting

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.