Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The aim of this paper is to analyze the link between price rigidity and indeterminacy. This is done within a cash‐in‐advance economy that is known to exhibit indeterminacy at high degrees of relative risk aversion. My findings show that price stickiness reduces the scope of these sunspot equilibria: to be compatible with indeterminacy, sluggish price adjustment requires degrees of relative risk aversion that prove too high to square with data.