Kumar, S2020-07-122020-07-122020-03-102020-03-10Applied Economics Letters, 27(1), 1-4.1350-4851https://hdl.handle.net/10292/13520We utilize the nonlinear least squares (NLLS) and seemingly unrelated regression (SUR) techniques to estimate information stickiness parameter λ for the USA. We find that λ values appeared in a somewhat humped shape or inverted U pattern during the financial crisis. Prior to the financial crisis (1978.Q1-2006.Q4), λ was around 0.3. However, when the sample is extended to include the financial crisis period (1978.Q1-2011.Q4), λ increased to around 0.6. Results imply that during the financial crisis many firms became flexible and efficient and used updated information to set optimal prices.Copyright © 2019 Taylor & Francis. Authors retain the right to place his/her pre-publication version of the work on a personal website or institutional repository as an electronic file for personal or professional use, but not for commercial sale or for any systematic external distribution by a third. This is an electronic version of an article published in (see Citation). Applied Economics Letters is available online at: www.tandfonline.com with the open URL of your article (see Publisher’s Version).Financial crisis; Sticky information Phillips curve; Stickiness parameterJournal ArticleOpenAccess10.1080/13504851.2019.1602704