(S,s) and State Dependence

Economic Theory and the World of Practice: A Celebration of the (S,s) Model” [JEP 2010 with John Leahy] provides a broad introduction to research on microeconomic indivisibilities

The Variability of Aggregate Demand with (S,s) Inventory Policies,” [Econometrica 1985] introduced an approach to aggregating (S,s) polices.

Menu Costs and the Neutrality of Money” [QJE 1985 w. Daniel Spulber] introduced state dependent pricing to the macroeconomics literature, showing the difference with time dependent pricing.

State-Dependent Pricing and the Dynamics of Money and Output [w. John Leahy, QJE 1991] and “Aggregation and Optimization With State Dependent Pricing,” [w. Leahy, Econometrica, 1997] further analyzed distinctions between time and state dependence

Equilibrium in a Durables Goods Market with Lumpy Adjustment Costs,” [w. Leahy, JET, 2006] is well named.

Monetary Policy as a Process of Search” [w. Leahy, AER, 1996] models difficulties in learning the state of the economy when investors have fixed costs.

Thinking about externalities associated with fixed costs of adjustment led John and my research focus on social learning