TY  - JOUR
AU  - Benabou,Roland
AU  - Konieczny,Jerzy
TI  - On Inflation and Output with Costly Price Changes: A Simple Unifying Result
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 135
PY  - 1993
Y2  - May 1993
UR  - http://www.nber.org/papers/t0135
L1  - http://www.nber.org/papers/t0135.pdf
N1  - Author contact info:
Roland Benabou
Department of Economics
and Woodrow Wilson School
Princeton University
Princeton, NJ 08544
Tel: 609/258-3672
Fax: 609/258-5533
E-Mail: rbenabou@princeton.edu

Jerzy Konieczny
E-Mail: jkoniecz@wlu.ca
AB  - We analyze the effect of inflation on the average output of monopolistic firms facing a small fixed cost of changing nominal prices. Using Taylor expansions, we derive a general closed-form solution for the slope of the long-run Phillips curve. This very simple, unifying formula allows us to evaluate and clarify the role of three key factors: the asymmetry of the profit function, the convexity of the demand function, and the discount rate. These partial equilibrium effects remain important components of any general equilibrium model with (s,S) pricing.
ER  -