منابع مشابه
A discrete and symmetric price adjustment process on the simplex
We study the ta( tonnement process in an exchange economy with three commodities and three agents. We argue that for the multiplicative ta( tonnement process the simplex is a natural normalization rule. We analyse the in#uence of symmetry in preferences and endowments on the dynamics of the ta( tonnement process. Depending on this symmetry there are di!erent bifurcation routes to chaos. In part...
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In an in nite horizon model with stochastic costs, moderate ination, costly price adjustment, and optimal price setting, we demonstrate that individual price reductions will be larger but less frequent than price increases. With positive ination, aggregate prices are more responsive to cost increases than to cost decreases, and a calibrated version of the model ts well the magnitude of downw...
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We derive a measure of firm speed of price adjustment that is directly inversely related to market power and compare this to the measure derived by Martin (1993). However, both measures are incorrect when firms have non-zero price conjectural variations and treat competing price levels as exogenous. This is because Taylor series expansions of the demand function implicitly assume that firms inf...
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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...
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This paper uses a unique micro data set to test for the presence of price asymmetries at the firm level. We find that firm pricing is indeed asymmetric, as Tobin (1972) suggested long ago. Moreover, there is strong evidence to support Ball and Mankiw's (1994) suggestion that firm price asymmetry is dependent on inflation. However, Ball and Mankiw's theory seems to hold better for changes in cos...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 1987
ISSN: 0165-1765
DOI: 10.1016/0165-1765(87)90023-1