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Book/Printed Material Reference prices and nominal rigidities

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Title

  • Reference prices and nominal rigidities

Summary

  • "We assess the importance of nominal rigidities using a new weekly scanner data set from a major U.S. retailer, that contains information on prices, quantities, and costs for over 1,000 stores. We find that nominal rigidities are important but do not take the form of sticky prices. Instead, nominal rigidities take the form of inertia in reference prices and costs, defined as the most common prices and costs within a given quarter. Weekly prices and costs fluctuate around reference values which tend to remain constant over extended periods of time. Reference prices are particularly inertial and have an average duration of roughly one year. So, nominal rigidities are present in our data, even though weekly prices change very frequently, roughly once every two weeks. We argue that the retailer chooses the frequency with which it resets references prices so as to keep the realized markups within plus/minus twenty percent of the desired markup over reference cost"--National Bureau of Economic Research web site.

Names

  • Eichenbaum, Martin S.
  • Jaimovich, Nir
  • Rebelo, Sergio
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2008.

Notes

  • -  Title from PDF file as viewed on 6/13/2008.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2008610527

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Eichenbaum, Martin S, Nir Jaimovich, Sergio Rebelo, and National Bureau Of Economic Research. Reference Prices and Nominal Rigidities. Cambridge, MA: National Bureau of Economic Research, 2008. Pdf. https://www.loc.gov/item/2008610527/.

APA citation style:

Eichenbaum, M. S., Jaimovich, N., Rebelo, S. & National Bureau Of Economic Research. (2008) Reference Prices and Nominal Rigidities. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://www.loc.gov/item/2008610527/.

MLA citation style:

Eichenbaum, Martin S, et al. Reference Prices and Nominal Rigidities. Cambridge, MA: National Bureau of Economic Research, 2008. Pdf. Retrieved from the Library of Congress, <www.loc.gov/item/2008610527/>.