NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A State-Dependent Model of Intermediate Goods Pricing

Brent Neiman

NBER Working Paper No. 16283
Issued in August 2010
NBER Program(s):   IFM   ITI   ME

Recent analyses of transaction-level datasets have generated new stylized facts on price setting and greatly influenced the empirical open- and closed-economy macroeconomics literatures. This work has uncovered marked heterogeneity in price stickiness, demonstrated that even non-zero price changes do not fully "pass through" exchange rate shocks, and offered evidence of synchronization in the timing of price changes. Further, intrafirm prices have been shown to differ from arm's length prices in each of these characteristics. This paper develops a state-dependent model of intermediate goods pricing, which allows for arm's length and intrafirm transactions, and is capable of generating these empirical pricing patterns.

download in pdf format
   (390 K)

email paper

This paper is available as PDF (390 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16283

Published: Brent, Neiman, 2011. "A state-dependent model of intermediate goods pricing," Journal of International Economics, Elsevier, vol. 85(1), pages 1-13, September. citation courtesy of

Users who downloaded this paper also downloaded these:
Backus, Gavazzoni, Telmer, and Zin w16218 Monetary Policy and the Uncovered Interest Parity Puzzle
Costinot, Donaldson, and Komunjer w16262 What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas
Caplin and Leahy w16284 A Graph Theoretic Approach to Markets for Indivisible Goods
Kehoe and Midrigan w16364 Prices are Sticky After All
Caplin and Leahy w16285 Comparative Statics in Markets for Indivisible Goods
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us