DISAGGREGATE EVIDENCE ON PRICE STICKINESS AND IMPLICATIONS FOR MACRO MODELS

C-Tier
Journal: Economic Inquiry
Year: 2008
Volume: 46
Issue: 4
Pages: 561-575

Authors (2)

CARL R. GWIN (not in RePEc) DAVID D. VAN HOOSE (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We use the methodology applied at the aggregate level by Gali and Gertler (1999) to analyze price and cost data for U.S. six‐digit North American Industry Classification System (NAICS) industries. Industries with price adjustment periods of at least 6 quarters generate no more than about 43% of total sales of industries we analyze. Industries with estimated price adjustment speeds of less than a year generate at least 44% of sales. Our conclusion is that disaggregate U.S. data provide as much support in favor of relatively high price flexibility as they do for the assumption of widespread price stickiness utilized in many modern macroeconomic theories. (JEL E31, L16)

Technical Details

RePEc Handle
repec:bla:ecinqu:v:46:y:2008:i:4:p:561-575
Journal Field
General
Author Count
2
Added to Database
2026-01-29