The Generalized Calvo and the Generalized Taylor models of price and wage-setting are, unlike the standard Calvo and … Taylor counterparts, exactly consistent with the distribution of durations observed in the data. Using price and wage micro … monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is …

We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC), that have … to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The …

I embed the pricing model proposed by Dixon and Kara (2011a, b) (i.e. a Generalized Taylor Economy (GTE)) into a state …

the assessment of the welfare costs of nominal rigidities and the performance of alternative monetary policy rules in an … scheme matters quantitatively for the welfare costs of nominal rigidities. However, qualitative statements such as the … welfare ranking of alternative monetary policy rules are robust to changes in contracting schemes. The difference between …

those of the original Poole analysis. This is also confirmed when considering welfare. In particular, an interest rate rule … foreign shocks, welfare improves under an interest rate rule relative to a money supply rule when real shocks are considered …

obtain when intertemporal substitution is low, and that output volatility rankings do not induce similar welfare rankings …

welfare in the economy by up to 0.3 percent of consumption. This result is robust to several specifications of the Taylor rule …

a fixed rule for convertibility. Quantifying her line of reasoning from a welfare-based perspective leads to three main … results: (1) Returning to a fixed exchange rate arrangement implies high welfare losses for countries with large public … sectors; (2) The welfare loss is increasing in government size; (3) Increasing the share of public expenditures reduces output …

pricing schemes—Calvo (1983) and Rotemberg (1982)—under a positive trend inflation rate. Our empirical findings (i) support … statistical superiority of the Calvo setting; (iii) point to a substantially lower degree of price indexation under Calvo. We show … that the superiority of the Calvo model is due to the restrictions imposed by such a pricing scheme on the aggregate demand …