Similar Search Results

Pesaran, M. Hashem - 2011

This paper considers the problem of aggregation in the case of large linear dynamic panels, where each micro unit is … Pesaran (2003), an optimal aggregate function is derived, and the limiting behavior of the aggregation error is investigated … which ﾑobservedﾒ inflation persistence at the aggregate level is due to aggregation and/or common unobserved factors. Our …

Persistent link: https://www.econbiz.de/10013129942

Real Wage Rigidities and the Cost of Disinflations

Ascari, Guido; Merkl, Christian - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

This paper analyzes the cost of disinflations under real wage rigidities in a micro-foundedNew Keynesian model. The consensus is that real wage rigidities can be a useful mechanismto induce the inflation persistence that is absent in the standard Calvo model...

Persistent link: https://www.econbiz.de/10005861857

Inflation Persistence and the Phillips Curve Revisited

Karanassou, Marika; Snower, Dennis J. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007

A major criticism against staggered nominal contracts is that they give rise to the so called"persistency puzzle" although they generate price inertia, they cannot account for thestylised fact of inflation persistence. It is thus commonly asserted that, in the context of thenew Phillips curve...

Persistent link: https://www.econbiz.de/10005863257

Optimal Price Indices for Targeting Inflation Under Incomplete Markets

Anand, Rahul - 2010

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. In this paper, we develop a two-sector two-good closed economy new Keynesian model to study the optimal choice of price index in markets with...

Persistent link: https://www.econbiz.de/10013139035

Does Downward Nominal Wage Rigidity Dampen Wage Increases?

Stueber, Heiko - 2010

Focusing on the compression of wage cuts, many empirical studies find a high degree of downward nominal wage rigidity (DNWR). However, the resulting macroeconomic effects seem to be surprisingly weak. This contradiction can be explained within an intertemporal framework in which DNWR not only...

Persistent link: https://www.econbiz.de/10013139046

The Welfare Impact of Price Changes on Household Welfare and Inequality 1999-2010

Loughrey, Jason - 2011

This paper provides a single welfare measure to show the effects of consumer price changes upon households in Ireland between 1999 and 2010. This measure combines an efficiency component using a Linear Expenditure System (LES) and an equity component using the Atkinson Social Welfare Function....

Persistent link: https://www.econbiz.de/10013124494

Capital Prices and Eurozone Competitiveness Differentials

Askenazy, Philippe - 2013

Competitiveness differentials are blamed for the instability of the Eurozone. Most of the analyses focus on labour costs or labour-market institutions. This paper explores an additional source of differentials in competitiveness: land and building prices. European countries, especially France,...

Persistent link: https://www.econbiz.de/10013086230

Labor Market Institutions and the Response of Inflation to Macro Shocks in the EU : A Two-Sector Analysis

D'Adamo, Gaetano - 2013

We model empirically the role of labor market institutions in affecting the response of inflation to labor market and exchange rate shocks in the EU. We adopt a simple Phillips curve framework, treating separately the sectors producing traded and non-traded goods. Our results show that labor...

Persistent link: https://www.econbiz.de/10013075782

Immigration and Prices : Quasi-Experimental Evidence from Syrian Refugees in Turkey

Balkan, Binnur - 2016

We exploit the regional variation in the unexpected (or forced) inflow of Syrian refugees as a natural experiment to estimate the impact of immigration on consumer prices in Turkey. Using a difference-in- differences strategy and a comprehensive data set on the regional prices of CPI items, we...

Persistent link: https://www.econbiz.de/10013001318

Productivity Growth and the Phillips Curve : A Reassessment of the US Experience

Karanassou, Marika - 2009

In this paper we analyse a new Phillips curve (NPC) model and demonstrate that (i) frictional growth, i.e. the interplay of wage-staggering and money growth, generates a nonvertical NPC in the long-run, and (ii) the Phillips curve (PC) shifts with productivity growth. On this basis we estimate a...

Persistent link: https://www.econbiz.de/10013158034