| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP8863 |
| DP8863 Price setting with menu cost for multi-product firms | |
| Fernando Alvarez; Francesco Lippi | |
| 发表日期 | 2012-02-01 |
| 出版年 | 2012 |
| 语种 | 英语 |
| 摘要 | We model the pricing decisions of a multi-product firm that faces a fixed 'menu' cost: once the cost is paid, the firm can adjust the price of all its products. We characterize analytically the steady state firm?s decision in terms of the structural parameters: the variability of the flexible prices, the curvature of the profit function, the size of the menu cost, and the number of products that are sold. We provide expressions for the steady state frequency of adjustment, the hazard rate of price adjustments, and the size distribution of price changes, all in terms of the structural parameters. We study analytically the impulse response of aggregate prices and output to a monetary shock. The cumulative response of output to a monetary shock is the product of three terms: the steady state standard deviation of price changes, the average time elapsed between price changes, and a function of both the number of products and the size of the monetary shock. The size of the cumulative response of output and the length of the half-life of the response of aggregate prices to a monetary shock increase with the number of products, both of them more than double as the number of products goes from 1 to ten, quickly converging to the ones of Taylor?s staggered price model. |
| 主题 | International Macroeconomics |
| 关键词 | Economies of scope in price changes Fixed costs Impulse responses Menu cost Monetary shocks Optimal control in multiple dimensions Quasi-variational inequalities |
| URL | https://cepr.org/publications/dp8863 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/537687 |
| 推荐引用方式 GB/T 7714 | Fernando Alvarez,Francesco Lippi. DP8863 Price setting with menu cost for multi-product firms. 2012. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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