Chen, Been-Lon; Liao, Shian-Yu - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 127-139
Evidence indicates that consumer durables are more flexibly priced than nondurable goods and services. In otherwise standard two-sector neoclassical sticky-price models with flexible durable prices, following monetary tightening, nondurables decrease but consumer durables increase. Friction in...