University of Melbourne
Seikei University
Keio University
抄録
This paper develops a price model with a product cycle. Through a frictional product market with search and matching frictions, an endogenous product cycle is accompanied with a price cycle where a price for a new good and a price for an existing good are set in a different manner. This model nests a New Keynesian Phillips curve with the Calvo’s price adjustment as a special case and generates several new phenomena. Our simple model captures observed facts in Japanese product level data such as the pro-cyclicality among product entry, demand, and price. In a general equilibrium model, an endogenous product entry increases variation of the inflation rate by 20 percent in Japan. This number increases to 72 percent with a price discounting after a first price.
内容記述
Publisher's another name: JSPS Grants-in-Aid for Scientific Research (S) Central Bank Communication Design
2019年9月改訂
Product Cycle and Prices : a Search Foundation
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