Döpke, Jörg; Funke, Michael; Holly, Sean; Weber, Sebastian - 2009
output and inflation across a population of firms is studied. The only form of heterogeneity is confined to the probability … that the ith changes its prices in response to a shock. In this Calvo setup the moments of the cross sectional distribution … of output and inflation depend crucially on the proportion of firms that are allowed to change their prices. We test this …