Is sticky price adjustment important for output fluctuations?
نویسندگان
چکیده
منابع مشابه
How important is discrete adjustment in aggregate fluctuations?
Individual actions such as the purchase of a machine or the changing or a price are often discrete and infrequent. Macroeconomic models, however, often ignore this intermittent behavior. In this paper, we present conditions under which a representative agent model, which ignores discrete adjustment on the individual level, is observationally equivalent to a model that takes discrete adjustment ...
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A risk-averse price-setting firm which knows the quantity demanded at the status quo price but has imperfect information otherwise may choose not to change it although an otherwise identical risk-neutral firm would do so, provided the variance of the firm's subjective probability distribution over quantities demanded as a function of price displays a kink at the status quo. This is equivalent t...
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ژورنال
عنوان ژورنال: Review of Keynesian Economics
سال: 2015
ISSN: 2049-5323,2049-5331
DOI: 10.4337/roke.2015.03.08