Aruoba, S. Borağan; Oue, Eugene; Saffie, Felipe; … - 2023
We propose a parsimonious framework for real rigidities, in the form of strategic complementarities, that can generate … featuring strategic complementarities require unrealistically volatile shocks to idiosyncratic productivity to be consistent … with pricing moments. We develop a simple menu-cost model with strategic complementarities along with idiosyncratic …