Understanding the degree of price stickiness and the nature of price setting is necessary for analyzing the effects of monetary policy on economy. To the best of our knowledge, no comprehensive study has examined the degree of price stickiness in Iran yet. For this reason, we examine the basic features of retail price setting behavior using a large data set containing the micro data underly...

Wage rigidity, stemming from highly distortive labor market policies, is a natural candidate to explain the over-valuation of the CFA Franc after the adverse external shocks of the 1980s. This paper uses a variety of data sources to assess the actual rigidity of wages in CFA countries and to analyze how it relates to their labor market policies. The paper shows that wages are high in CFA countr...

• We investigate how firms adjust labour costs in the presence of wage rigidities. • Portuguese firms adjust labour costs by adjusting the quantity and cost of labour. • Firms with more flexible base wages are 20 pp. less likely to reduce employment. • By cutting labour costs, firms are 35 pp. less likely to reduce employment. a b s t r a c t a r t i c l e i n f o This paper uses firm level sur...

We estimate the dynamic stochastic general equilibrium model of Christiano, Eichenbaum, and Evans (2005) on United Kingdom data. Our estimates suggest that price stickiness is a more important source of nominal rigidity in the U.K. than wage stickiness. Our estimates of parameters governing investment behavior are only well behaved when post-1979 observations are included, which reflects govern...