If changes in aggregate demand were an important source of macroeconomic fluctuations, real wages would be … variation at cyclical frequencies. The first assumes only that the elasticity of demand is a function of the level of output. In … theory, markups are chosen to ensure that no one deviates from an (implicitly) collusive understanding. Increases in rates of …

I present a generalization of the standard (full-information) model of state- dependent pricing in which decisions …. The imperfect information is endogenized using a variant of the theory of quot;rational inattentionquot; proposed by Sims … the standard state-dependent pricing model and the Calvo model of price adjustment as limiting cases (corresponding to a …

. The imperfect information is endogenized using a variant of the theory of "rational inattention" proposed by Sims (1998 …I present a generalization of the standard (full-information) model of state- dependent pricing in which decisions … standard state-dependent pricing model and the Calvo model of price adjustment as limiting cases (corresponding to a zero …

If changes in aggregate demand were an important source of macroeconomic fluctuations, real wages would be … variation at cyclical frequencies. The first assumes only that the elasticity of demand is a function of the level of output. In … theory, markups are chosen to ensure that no one deviates from an (implicitly) collusive understanding. Increases in rates of …