Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245455 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9274
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper provides evidence on price rigidity at the product- and firm-level in Norway. A strong within-firm synchronization is found supporting the theory of economies of scope in menu costs. The industry synchronization effects are found to be small suggesting that firms either have some monopoly power, or that a firm's costs of changing their own prices may be larger than the benefit of responding to their competitors' price changes. These findings have potentially important implications for the micro-foundations of macroeconomic models, and thus the policy advice derived from such models.
Subjects: 
price setting
monthly micro data
selection effects
JEL: 
E31
D43
C35
Document Type: 
Working Paper
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