Sticky Prices in the United States
Bibliographic Data
| ID | 10180819 |
|---|---|
| Authors | Julio J Rotemberg (corresponding author) |
| Year | 1982 |
| Volume | 90 |
| Issue | 6 |
| Pages | 1187-1211 |
| Publication date | 1982-12-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261117 |
| OpenAlex | W2142741054 |
| Language | EN |
| Citations received | 58 |
| References cited | 6 |
It has often been argued that prices are sticky in the United States. However, the empirical papers that have claimed to support this view have not reflected any formal behavioral theory. This paper presents a theory that justifies price stickiness, namely, that firms, fearing to upset their customers, attribute a cost to price changes. The rational expectations equilibrium of an economy with many such firms is presented, estimated with postwar U.S. data, and tested against alternative hypotheses. The results largely support the model. Furthermore, the hypothesis that prices are not sticky is rejected by U.S. data
Economics · Empirical research · Keynesian economics · Microeconomics · Price setting · Rational expectations · Economic theories and models · Economics of Agriculture and Food Markets · Monetary Policy and Economic Impact
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Uncertainty shocks are aggregate demand shocks
Firms’ Price, Cost and Activity Expectations
The effects of macro uncertainty shocks in the euro area
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Exchange-Rate Dynamics With Sticky Prices
The Block-Correlated Pseudo Marginal Sampler for State Space Models
The Pass-Through of Minimum Wages into U.S. Retail Prices
MPCs, MPEs, and Multipliers
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La persistance de l'inflation dans les modèles néo-keynésiens
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Reactions to Shocks and Monetary Policy Regimes
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Macroeconomics after Lucas
Monetary Economics
Monetary Accommodation, Exchange Rate Regimes and Inflation Persistence
Keynesian Involuntary Unemployment and Sticky Nominal Wages
Aggregate Pattern of Time-Dependent Adjustment Rules, I
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Monetary Policy for a Resource-Rich Economy and the Zero Lower Bound
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The Zero Lower Bound and Endogenous Uncertainty
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Relative Price Distortions and Inflation Persistence
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Trend Inflation and Firms Price‐Setting
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| Unique citing works | 58 |
|---|---|
| Citations per year | 1,38 |
| Citation span | 1984 - 2025 (42) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 56 |