Title of article
Distributionaldynamicsundersmoothlystate-dependentpricing
Author/Authors
James Costain، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
20
From page
646
To page
665
Abstract
Starting fromtheassumptionthatfirmsaremorelikelytoadjusttheirpriceswhendoing
soismorevaluable,thispaperanalyzesmonetary policyshocksinaDSGEmodelwith
firm-levelheterogeneity.Themodeliscalibratedtoretailpricemicrodata,andinflation
responsesaredecomposedinto‘‘intensive’’,‘‘extensive’’,and‘‘selection’’margins.Money
growth andTaylorruleshocksbothhavenontrivialrealeffects,becausethelowstate
dependence impliedbythedatarulesoutthestrongselectioneffectassociatedwithfixed
menucosts.Theresponsetosector-specificshocks isgradual,butinappropriateecono-
metricsmightmakeitappearimmediate.
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846500
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