Price setting in General Equilibrium: Alternative Specifications

This paper compares a number of alternative specifications for price setting in the context of the Smets-Wouters (2003) Dynamic Stochastic General Equilibrium model. We compare the Calvo model with a standard Taylor contracting model and show that by allowing for sector-specific capital the Taylor contracting model with relative short contract length is performing as well as the Calvo model

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Year of publication:	2005-11-11
Authors:	de Walque, G. ; Smets, F. ; Wouters, R.
Institutions:	Society for Computational Economics - SCE
Subject:	sticky prices \| DSGE models \| business cycle fluctuations

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Series:	Computing in Economics and Finance 2005.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Computing in Economics and Finance 2005 Number 370
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005706299