The real effects of monetary shocks: Evidence from micro pricing moments

A-Tier
Journal: Journal of Monetary Economics
Year: 2023
Volume: 139
Issue: C
Pages: 1-20

Authors (4)

Hong, Gee Hee (not in RePEc) Klepacz, Matthew (not in RePEc) Pasten, Ernesto (Banco Central de Chile) Schoenle, Raphael (Brandeis University)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Empirically, what pricing moments are informative about monetary non-neutrality? The frequency of price changes is robustly informative among a set of pricing moments and across specifications: A lower frequency is statistically significantly associated with higher monetary non-neutrality, in line with models of price rigidities. Other moments that describe the price change distribution are not consistently or significantly related to monetary non-neutrality. While the frequency explains the largest share of variation in non-neutrality, no pricing moments individually or jointly explain a majority of the variation in a linear empirical setting. Non-pricing moments explain additional variation, however are not consistently associated with monetary non-neutrality. A multi-sector menu cost model featuring different price adjustment technologies across sectors can rationalize our main findings.

Technical Details

RePEc Handle
repec:eee:moneco:v:139:y:2023:i:c:p:1-20
Journal Field
Macro
Author Count
4
Added to Database
2026-01-28