Supplementary Appendix to 'Repricing Avalanches'

Abstract

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