The finding of small price changes in many retail price datasets is often viewed as a puzzle. We show that a possible … explanation for the presence of small price changes is related to sales volume, an observation that has been overlooked in the …, we find that small price changes are more frequent when products’ sales volume is high. This finding holds across product …

changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the … Golosov and Lucas (2007) model generates fluctuations in the fraction of price changes, it predicts too little dispersion in … the size of price changes and therefore little monetary nonneutrality. In contrast, versions of the model that reproduce …

changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the … Golosov and Lucas (2007) model generates fluctuations in the fraction of price changes, it predicts too little dispersion in … the size of price changes and therefore little monetary nonneutrality. In contrast, versions of the model that reproduce …