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This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly … throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three …
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This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly … throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three …
Persistent link: https://www.econbiz.de/10014131957
Several Phillips curves based on sticky information and sticky prices are estimated and compared using Bayesian VAR-GMM. This method derives expectations in each Phillips curve from a VAR and estimates the Phillips curve parameters and the VAR coefficients simultaneously. Quasi-marginal...
Persistent link: https://www.econbiz.de/10014238446
This paper compares sticky-price and sticky-information model under a more general staggering price-setting scheme … that, without strategic complementarity in the price-setting, two models generate similar inflation dynamics. The … distribution of price durations dominates the shape of impulse response in both models. Furthermore, with strategic complementarity …
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