scholarly journals Imperfect competition, menu costs and near rationality as a source of the nominal price rigidity in the new keynesian macroeconomics

2003 ◽  
Vol 51 (6) ◽  
pp. 901-914
Author(s):  
Karel Brůna
Keyword(s):  
Imperfect Competition ◽  
New Keynesian ◽  
Price Rigidity ◽  
Menu Costs

Regular Price Stickiness in German Food Retailing

2019 ◽  
Vol 18 (2) ◽  
Author(s):  
Patrick Sebastian Holzer ◽  
Thomas Bittmann
Keyword(s):  
Imperfect Competition ◽  
Price Rigidity ◽  
Private Labels ◽  
Food Retailing ◽  
Menu Costs ◽  
Price Stickiness ◽  
Price Changes ◽  
National Brands ◽  
German Food ◽  
Regular Price

AbstractThe present study investigates the underlying factors of price stickiness in German food retailing using fluid milk as a case study. We distinguish the duration between two actual price changes and two regular price changes as measures for price stickiness. Especially in the case of private labels, the choice of proxy for price rigidity has important implications. If we consider (regular) price changes, private label products are more (less) rigid than national brands. Price rigidity increases in the product’s average price. Prices of low priced private labels are rather flexible. Price adjustment of high priced private labels is similarly sluggish compared to national brands. We rationalize this finding with variable mark-ups under imperfect competition. In line with previous research, we find that price stickiness also depends on product attributes, retail formats, menu costs, psychological price points, and time-varying market conditions.

scholarly journals The New Keynesian Synthesis

1993 ◽  
Vol 7 (1) ◽  
pp. 5-22 ◽  
Author(s):  
David Romer
Keyword(s):  
Current Understanding ◽  
New Keynesian ◽  
Price Rigidity ◽  
Rapid Progress ◽  
The Past ◽  
Nominal Rigidity

The new Keynesians made more rapid progress in understanding the microeconomics of unemployment than in understanding the microeconomics of nominal price rigidity. But the past five years have seen important breakthroughs in this second area. This paper will describe these breakthroughs, discuss our current understanding of nominal rigidity, and assess the work that remains to be done.

Menu costs, firm size and price rigidity

2000 ◽  
Vol 66 (1) ◽  
pp. 59-63 ◽  
Author(s):  
Robert A Buckle ◽  
John A Carlson
Keyword(s):  
Firm Size ◽  
Price Rigidity ◽  
Menu Costs

scholarly journals New Keynesian Phillips Curve for Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 395-404 ◽  
Author(s):  
Ahsan Ul Haq Satti ◽  
Wasim Shahid Malik ◽  
Ghulam Saghir
Keyword(s):  
Imperfect Competition ◽  
Rational Expectations ◽  
Phillips Curve ◽  
Dynamic Stochastic General Equilibrium ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Business Cycle Theory ◽  
The Standard Model ◽  
Dynamic Stochastic ◽  
Micro Foundations

Recently macroeconomists have moved to a new neo-classical synthesis by integrating Keynesian features like imperfect competition and nominal rigidities with dynamic stochastic general equilibrium model of the Real Business Cycle Theory with micro foundations and rational expectations, [see, for instance, McCallum and Nelson (1999)]. The standard model comprises of a trinity; consumption and inflation adjustment equations with a monetary authority’s reaction function. One of the pillar of the modelinflation adjustment equation, also known as New Keynesian Phillips Curve (NKPC) in the literature, has at least two important features; unlike the traditional Phillips curve the NKPC is forward-looking; and it has been derived from the profit maximising behaviour of the firms in a monopolistically competitive market structure.

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