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manufactured goods 1972-1996. Two sources of dynamics are considered: customer markets and pre-set prices. The dynamic adjustment …
Persistent link: https://www.econbiz.de/10011587060
This paper investigates how financial market imperfections and the frequency of price adjustment interact. Based on new … which the extensive margin of price adjustment is absent (Rotemberg, 1982) or constant (Calvo, 1983). Hence, the interaction … of financial frictions and the frequency of price adjustment potentially induces important consequences for the …
Persistent link: https://www.econbiz.de/10011597241
adjustment probability is positive. …
Persistent link: https://www.econbiz.de/10012061481
We take a monthly panel of German firms over the period 1980−2017 to examine the relative importance of time and state dependence in the decisions of firms to raise, lower or leave their price constant. In addition, we seek to estimate the relative importance of macroeconomic factors and...
Persistent link: https://www.econbiz.de/10012103943
Persistent link: https://www.econbiz.de/10012004722
This paper contributes to the literature by assessing expectation effects from monetary policy for the G7 economies. We consider a sample period running from 1995M1 to 2016M6 based on a panel VAR framework, which accounts for international spillovers and time-variation. Relying on a broad set of...
Persistent link: https://www.econbiz.de/10011806725
evidence of linear and fixed menu costs that account for inaction of price adjustment. Convex menu costs are statistically …
Persistent link: https://www.econbiz.de/10011415105
We document a novel role of heterogeneity in price rigidity: It strongly amplifies the capacity of idiosyncratic shocks to drive aggregate fluctuations. Heterogeneity in price rigidity also completely changes the identity of sectors from which fluctuations originate. We show these results both...
Persistent link: https://www.econbiz.de/10011891743
We estimate the effects of monetary policy on price-setting behavior in administrative micro data underlying the German producer price index. We find a strong degree of monetary nonneutrality. After expansionary monetary policy, the mass of additional price adjustments is economically small and...
Persistent link: https://www.econbiz.de/10012138873
This paper conducts a structural analysis of inflation persistence in the United Kingdom between 1965-2009. I allow for the possibility of shifts in the U.K. economy by estimating open-economy dynamic stochastic general equilibrium models in which parameters of a Taylor-type monetary policy...
Persistent link: https://www.econbiz.de/10012121979