We study optimal price setting by a monopolist in an in…nite horizon model with stochastic costs, moderate in‡ation, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model …ts numerically several empirical regularities. In particular, price reductions are larger but less frequent than price increases, and prices respond consid...

We show that there is no discrete-time price-adjustment mechanism (any process that at each period looks at the history of prices and excess demands and updates the prices) such that for any market (a set of goods and consumers with endowments and strictly concave utilities) the price-adjustment mechanism will achieve excess demands that are at most an epsilon fraction of the total supply withi...

the main objective of this study was to evaluate the response of consumers to changes in income and prices of chicken meat in the short run and long run. in order to achieve this goal, vector auto regression (var) and vector error correction model (vecm) have been applied to data since 1974 to 2007. impulse response function (irf) calculation indicated that past and present consumption of chick...

the process of price setting in market for goods &services; along with the phenomenon of price ceiling in production factors market with distort the equilibrium & result in price gap in the economy, which in turn generates excess demand & necessitate the permanent sources of finance (subsidy) for its satisfaction, failing which may lead to budget deficit & embarrass the maintenance of policy ex...

Using a New-Keynesian framework, we investigate how far the inflationary processes in member states of EMU cause regional price levels to converge. We fail to produce hard evidence of the present existence of such an adjustment mechanism, notwithstanding that inflation in some countries tends to converge towards the euro area level. Overall, inflation persistence has declined significantly over...

Traditional Chinese medicine (TCM) is an important part of China's medical system. Due to the prolonged low price of TCM procedures and the lack of an effective mechanism for dynamic price adjustment, the development of TCM has markedly lagged behind Western medicine. The World Health Organization (WHO) has emphasized the need to enhance the development of alternative and traditional medicine w...

sugar beet is an important crop from the point of production and consumption. in this case, fars province is one of the largest producers iniran. the purpose of this study was to determine the effective factors on sugar beet supply. accordingly, time series information of the crop was collected from 1990 to 2004 infarsprovince and were analyzed through nerlove partially adjustment model that is...

Abstract. This research paper centred on how the global silver price can be estimated and predicted by implementing Evans Price Adjustment model (EPA). Firstly, we derived equation that represent capture data involving price, demand, supply of 2013-2021. We deployed two different numerical methods solving ordinary differential (ODE). The first method is 4th order Adam Bashforth-Moulton second E...