TY  - JOUR
AU  - Eichenbaum,Martin S.
AU  - Jaimovich,Nir
AU  - Rebelo,Sergio
AU  - Smith,Josephine
TI  - How Frequent Are Small Price Changes?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17956
PY  - 2012
Y2  - March 2012
UR  - http://www.nber.org/papers/w17956
L1  - http://www.nber.org/papers/w17956.pdf
N1  - Author contact info:
Martin S. Eichenbaum
Department of Economics
Northwestern University
2003 Sheridan Road
Evanston, IL  60208
Tel: 847/491-8232
Fax: 847/491-7001
E-Mail: eich@northwestern.edu

Nir Jaimovich
Department of Economics
Duke University
213 Social Services Building
Durham, NC 27708
Tel: 919/660-1864
E-Mail: njaimo@gmail.com

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu

Josephine Smith
NYU Stern School of Business
Department of Finance
44 West 4th Street, Suite 9-86
New York, NY 10012
Tel: 212-998-0171
E-Mail: jsmith@stern.nyu.edu
AB  - Recent empirical work suggests that small price changes are relatively common. These findings have been used to evaluate competing theories of nominal price rigidities. In this paper we use micro data from the consumer price index and a scanner data set from a national supermarket chain to reassess the importance of small price changes. We argue that the vast majority of these changes are due to measurement error. We conclude that small price changes are too small a phenomenon for macro modelers to be concerned with.
ER  -