Matsuoka, Takayasu - In: Japan and the World Economy 22 (2010) 1, pp. 13-20
There is strong empirical evidence that the degree of price stickiness differs across commodity items, and that the nonparametric hazard function of price changes is downward-sloping with some spikes. We introduce item-specific heterogeneity into the standard single-sector model of Calvo [Calvo,...