Hou, Cheng-qi; Wang, Pin - In: Journal for Economic Forecasting (2014) 2, pp. 53-70
This article studies how to employ aggregate data to estimate sectoral price stickiness, which is described by the Calvo-style price setting. We find that sectoral price stickiness cannot be effectively estimated by the Bayesian approach of the multisector new Keynesian model that is used in...