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Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 2008:6:
The choice between state- and time-dependent price rules

Klas Fregert ()

Abstract: Large review costs lead to time-dependent price setting rules. State-dependent rules become more likely when there is an increase in: set-up costs, the variability of the equilibrium price or the efficiency loss associated with being away from equilibrium.

Keywords: time-dependent price rule; state-dependent price rule; (follow links to similar papers)

JEL-Codes: E31; E32; (follow links to similar papers)

11 pages, March 24, 2008

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