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deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across …-sector pricing complementarities that contribute to a slow response of prices to aggregate shocks. In turn, input-market segmentation … prices to sector-specific shocks. Estimating the factor-augmented vector autoregression specification of Boivin, Giannoni …
Persistent link: https://www.econbiz.de/10009131507
determining the response of aggregate variables to shocks at different frequencies: Sectors where prices are stickier are … allowing for this type of heterogeneity is critically important to understanding the joint dynamics of output and prices, and …
Persistent link: https://www.econbiz.de/10008636164
We study the purchasing power parity (PPP) puzzle in a multisector, two-country, sticky-price model. Firms' price stickiness differs across sectors, in accordance with recent microeconomic evidence on price setting in various countries. Combined with local currency pricing, these differences...
Persistent link: https://www.econbiz.de/10005726584