Review of Economic Studies Vol. 80 No. 1 2013
Inventories, Markups, and Real Rigidities in Menu Cost Models
open access
Abstract
Real rigidities that limit the responsiveness of real marginal cost to output are a key ingredient of sticky price models necessary to account for the dynamics of output and inflation. We argue here, in the spirit of We study a menu cost economy in which firms hold inventories in order to avoid stockouts and to economize on fixed ordering costs.
- DOI
- 10.1093/restud/rds028
- Volume
- 80
- Issue
- 1
- Pages
- 249-276
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref