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dc.contributor.authorAnderson, Eric
dc.contributor.authorJaimovich, Nir
dc.contributor.authorSimester, Duncan
dc.date.accessioned2015-12-23T14:48:25Z
dc.date.available2015-12-23T14:48:25Z
dc.date.issued2015-10
dc.date.submitted2014-07
dc.identifier.issn0034-6535
dc.identifier.issn1530-9142
dc.identifier.urihttp://hdl.handle.net/1721.1/100494
dc.description.abstractA leading explanation in the economic literature is that monetary policy has real effects on the economy because firms incur a cost when changing prices. Using a unique database of cost and retail price changes, we find that variation in menu costs results in up to 13.3% fewer price increases. We confirm that these effects are allocative and have a persistent impact on both prices and unit sales. We provide evidence that the menu cost channel operates only when cost increases are small in magnitude, which is consistent with theory and provides the first empirical evidence of boundary conditions.en_US
dc.language.isoen_US
dc.publisherMIT Pressen_US
dc.relation.isversionofhttp://dx.doi.org/10.1162/REST_a_00507en_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.sourceMIT Pressen_US
dc.titlePrice Stickiness: Empirical Evidence of the Menu Cost Channelen_US
dc.typeArticleen_US
dc.identifier.citationAnderson, Eric, Nir Jaimovich, and Duncan Simester. “Price Stickiness: Empirical Evidence of the Menu Cost Channel.” Review of Economics and Statistics 97, no. 4 (October 2015): 813–26. © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technologyen_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.mitauthorSimester, Duncanen_US
dc.relation.journalReview of Economics and Statisticsen_US
dc.eprint.versionFinal published versionen_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dspace.orderedauthorsAnderson, Eric; Jaimovich, Nir; Simester, Duncanen_US
dc.identifier.orcidhttps://orcid.org/0000-0003-2758-0116
mit.licensePUBLISHER_POLICYen_US


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