The approach by Engelberg, Manski, and Williams (2009) to convert probabilistic survey responses into continuous probability distribution requires that the question intervals are equally wide. Almost all recently established household surveys have intervals of varying widths. Applying the...

This article studies firms' price-setting decision during a currency changeover. Buyers' difficulties with the new nominal price level may create incentives to raise prices temporarily but doing so comes at the risk of damaging a seller's standing as a fair retailer. We model firms' trade-off...

In a simple New Keynesian model, we derive a closed form solution for the inflation-gap persistence parameter as a function of the policy weights in the central bank’s Taylor rule. By estimating the time-varying weights that the FED attaches to inflation and the output gap, we show that the...