Supplementary Appendix to 'Repricing Avalanches'
43 Pages Posted: 30 Mar 2021 Last revised: 6 Jul 2023
Date Written: July 1, 2023
In this Supplementary Appendix, we extend the baseline model of "Repricing Avalanches" to the case where productivity is not constant. Even though some portions are a straightforward extension of the baseline model, we allow for some overlap with the main text for a self-contained exposition of the extended model. We also provide an extended model with non-accommodative monetary policy setup.
Keywords: State-dependent pricing, menu costs, strategic complementarity, inflation volatility, aggregate fluctuations, self-organized criticality, Generalized Poisson distribution
JEL Classification: E31
Suggested Citation: Suggested Citation