Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249735 
Year of Publication: 
2021
Series/Report no.: 
Texto para discussão No. 687
Publisher: 
Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia, Rio de Janeiro
Abstract: 
We study a unique dataset with comprehensive coverage of daily prices in large multi-product retailers in Israel. Retail stores synchronize price changes around occasional "peak" days when they reprice around 10% of their products. To assess aggregate implications of partial price synchronization, we develop a new model in which multi-product firms face economies of scope in price adjustment, and synchronization is endogenous. Synchronization of price changes attenuates the average price response to monetary shocks, but only high degrees of synchronization can substantially strengthen monetary non-neutrality. Our calibrated model generates as little monetary non-neutrality as in Golosov and Lucas (2007).
Subjects: 
Ination
Prices
Multi-product pricing
Synchronization of prices
Menu cost
Monetary non-neutrality
JEL: 
D21
D22
E31
E52
L11
Document Type: 
Working Paper

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