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Price rigidity and the origins of aggregate fluctuations

Pasten, Ernesto; Schoenle, Raphael; Weber, Michael - 2018 - This version: August 2018

as large as those arising from an aggregate productivity shock. Heterogeneous price rigidity amplifies the aggregate …

Persistent link: https://www.econbiz.de/10011891743

Monetary policy, price setting, and credit constraints

Balleer, Almut; Zorn, Peter - 2019

We estimate the effects of monetary policy on price-setting behavior in administrative micro data underlying the German producer price index. We find a strong degree of monetary nonneutrality. After expansionary monetary policy, the mass of additional price adjustments is economically small and...

Persistent link: https://www.econbiz.de/10012138873

Strike while the iron is hot : optimal monetary policy with a nonlinear Phillips curve

Karadi, Peter; Nakov, Anton; Nuño, Galo; Pasten, Ernesto; … - 2024 - This version: September 19, 2024

We study the Ramsey optimal monetary policy within the Golosov and Lucas (2007) state-dependent pricing framework. The model provides micro-foundations for a nonlinear Phillips curve: the sensitivity of inflation to activity increases after large shocks due to an endogenous rise in the frequency...

Persistent link: https://www.econbiz.de/10015071168

Heterogeneous consumers, segmented asset markets, and the real effects of monetary policy

Enders, Zeno - 2017

This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the...

Persistent link: https://www.econbiz.de/10011653639

Price rigidities and the granular origins of aggregate fluctuations

Pasten, Ernesto; Schoenle, Raphael; Weber, Michael - 2017 - This version: August 2017

We study the aggregate implications of sectoral shocks in a multi-sector New Keynesian model featuring sectoral heterogeneity in price stickiness, sector size, and input-output linkages. We calibrate a 341 sector version of the model to the United States. Both theoretically and empirically,...

Persistent link: https://www.econbiz.de/10011717236

Wage and employment cyclicalities at the establishment level

Merkl, Christian; Stüber, Heiko - 2021

We document substantial cross-sectional heterogeneity of German establishments' real wage cyclicality over the business cycle. While wages of the median establishment are moderately procyclical, 36 percent of establishments have countercyclical wages. We estimate a negative connection between...

Persistent link: https://www.econbiz.de/10012619265

Optimal trend inflation

Adam, Klaus; Weber, Henning - 2018

Sticky price models featuring heterogeneous firms and systematic firm-level productivity trends deliver radically different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (1) the optimal steady-state inflation rate generically differs from zero and...

Persistent link: https://www.econbiz.de/10011845313

State-dependent or time-dependent pricing? : new evidence from a monthly firm-level survey: 1980-2017

Dixon, Huw; Grimme, Christian - 2019

We take a monthly panel of German firms over the period 1980−2017 to examine the relative importance of time and state dependence in the decisions of firms to raise, lower or leave their price constant. In addition, we seek to estimate the relative importance of macroeconomic factors and...

Persistent link: https://www.econbiz.de/10012103943

Behavioral New Keynesian models : learning vs. cognitive discounting

Meggiorini, Greta; Milani, Fabio - 2021

This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...

Persistent link: https://www.econbiz.de/10012509319

A theory of price adjustment under loss aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2014

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …

Persistent link: https://www.econbiz.de/10010354159