Price Rigidity: Causes and Macroeconomic Implications

by Torben M. Andersen

Overview

The price adjustment process is crucial to almost any macroeconomic issue. Anderson provides here a comprehensive and unified analysis of why prices may fail to adjust instantly, integrating the existing literature with his own new work on asymmetric information and imperfect competition. This unified treatment will allow readers to understand the mechanisms at work without becoming lost in technical details. This volume covers both real and nominal price ridigidites and integrates existing results from the literature with new results on causes for failures of price adjustment. Andersen's own theoretical work on imperfect information, a prime source of price and wage rigidity, is given prominence in the book. The volume is thus a combination of a valuable survey of the literature, and an original expression of future possible research avenues.

Product Details

ISBN-13:	9780198287605
Publisher:	Oxford University Press
Publication date:	01/12/1995
Edition description:	New Edition
Pages:	194
Product dimensions:	5.63(w) x 8.75(h) x 0.78(d)

Table of Contents

1	Introduction	1
2	Empirical Evidence	14
3	Imperfect Competition and Price Adjustment	29
4	Real Price Rigidity	48
5	Menu Costs	70
6	Imperfect Information	100
7	Asynchronization	126
8	Price--Wage Interactions	140
9	What have we learned?	162
	References	166
	Index	179