Durable goods and sticky prices: Industry-level evidence

We employ industry data to examine price stickiness of durables versus non-durables to evaluate Barsky et al. (2007) proposal that stickiness of durables' prices influences aggregate dynamics. Policy impacts from impulse responses accord with sticky-price frameworks even though non-durables' prices are relatively flexible.

► We evaluate Barsky, et al.'s proposal that sticky durable goods prices influence aggregate dynamics. ► We employ industry data to examine price stickiness of durables versus non-durables. ► We find that non-durable goods' prices are relatively flexible. ► Nevertheless, we find that policy impacts from impulse responses accord with sticky-price theory.