Gopinath, Gita; Itskhoki, Oleg - 2010
quantitatively evaluate sticky-price models (Calvo and menu cost) with variable markups at the wholesale level and constant markups … at the retail level, consistent with empirical evidence. Variable markups alone generate price sluggishness at the … aggregate level, while they fall short of matching price persistence at the micro level. Finally, variable markups magnify the …
