Endogenous Price Stickiness and Business Cycle Persistence
نویسندگان
چکیده
منابع مشابه
Staggered Price-Setting, Staggered Wage-Setting, and Business Cycle Persistence∗
Staggered price-setting and staggered wage-setting are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a dynamic stochastic general equilibrium framework. We show that, although the dynamic pricesetting and wage-setting equations are alike, a key parameter governing persistence is linked to the u...
متن کاملAggregate Price Stickiness
We accomplish two tasks to characterize aggregate price stickiness in this paper. First, we endogenize β, the fraction of the firms keeping their price unchanged following a money supply shock in the near-rationality model (Akerlof and Yellen, 1985) by introducing a distribution of price-adjustment barriers among the firms into the near-rationality model. Second, as β can be considered an indic...
متن کاملStaggered Contracts and Business Cycle Persistence
Staggered price and staggered wage contracts are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a dynamic stochastic general equilibrium framework. We show that, although the dynamic price setting and wage setting equations are alike, a key parameter governing persistence is linked to the underl...
متن کاملModeling Asymmetric Persistence over the Business Cycle
We address the issue of time varying persistence of shocks to macroeconomic time series variables by proposing a new and parsimonious time series model. Our model assumes that this time varying persistence depends on a linear combination of lagged explanatory variables, where this combination characterizes the business cycle regimes. The key feature of our model is that an autoregressive parame...
متن کاملPrice stickiness , inflation , and persistence in real exchange rate fluctuations : cross - country results *
Models that emphasize sticky prices to explain persistent real exchange rate fluctuations predict that such fluctuations should be less persistent in high inflation countries relative to low inflation countries. Cross-country regression results, in general, do not support this implication. 2001 Elsevier Science B.V. All rights reserved.
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2000
ISSN: 0022-2879
DOI: 10.2307/2601091