Incomplete cost pass-through under deep habits
نویسندگان
چکیده
Article history: Received 25 November 2008 Revised 23 May 2009 Available online 11 June 2009 JEL classification: D1 D4 L1
منابع مشابه
Nber Working Paper Series Incomplete Cost Pass-through under Deep Habits
A number of empirical studies document that marginal cost shocks are not fully passed through to prices at the firm level and that prices are substantially less volatile than costs. We show that in the relative-deep-habits model of Ravn, Schmitt-Grohe, and Uribe (2006), firm-specific marginal cost shocks are not fully passed through to product prices. That is, in response to a firm-specific inc...
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