Supplement to "Menu Costs, Multi-Product Firms, and Aggregate Fluctuations"

Appendix 1 describes the algorithm used to construct the regular price series.  Appendix 2 describes the computational algorithm used to characterize decision rules and the equilibrium in the model economy.  Appendix 3 studies an extension of the model in which the retailer face a fixed cost of changing the temporary price, in addition to the cost of deviating from the regular price.

Supplemental Authors: 
Virgiliu Midrigan