Rabanal, Pau; Rubio-Ramirez, Juan Francisco - Federal Reserve Bank of Atlanta - 2003
This paper estimates and compares four versions of the sticky price New Keynesian model for the Euro area, using a … Bayesian approach as described in Rabanal and Rubio-Ramírez (2003). We find that the average duration of price contracts is … smaller. On the other hand, average duration of wage contracts is estimated to between one and two quarters, lower than the …