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, sectoral heterogeneity in price rigidity (i) generates sizable GDP …

after uncertainty shocks. Price markups in contrast fall. This finding - inconsistent with the model - is corroborated by …

and labour markets continuously clear. The disequilibrium dynamics – in the form of regime-dependent output and employment … fluctuations, wage and price adjustments-complicate (viz. enrich) the decision making problems faced by the fiscal and monetary …

We document a novel role of heterogeneity in price rigidity: It strongly amplifies the capacity of idiosyncratic shocks … to drive aggregate fluctuations. Heterogeneity in price rigidity also completely changes the identity of sectors from … as large as those arising from an aggregate productivity shock. Heterogeneous price rigidity amplifies the aggregate …

In a VAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or …-sector New-Keynesian model. Here, the degree of overall durables price stickiness is not dramatically lower than that of …

We use detailed micro data to document a causal response of local retail price to changes in house prices, with … elasticities of 15%-20% across housing booms and busts. Notably, these price responses are largest in zip codes with many … homeowners, and non-existent in zip codes with mostly renters. We provide evidence that these retail price responses are driven …