In this paper, we show that a reduction in capital goods prices induced by trade policies can stimulate both investment and labor. We exploit a quasi-natural experiment in the form of a trade reform in Colombia to study how firms with differential exposure to reductions in capital goods tariffs...

Changing product quality, rapid technological progress, and short product life cycles make it difficult to compute indices that correctly reflect the true price movements of IT products. This paper assesses the differences between traditional and quality adjusted indices by providing results for...

We show that standard menu cost models cannot simultaneously reproduce the dispersion in the size of micro-price changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the Golosov and Lucas (2007) model generates fluctuations in the...

Das von der Deutschen Bundestiftung Umwelt (DBU) geförderte Forschungsprojekt „SIEGER“ ist ein wichtiger Baustein für Überlegungen und Analysen zum Nutzen und zur Qualitätssicherung von hochwertigen Umwelt- und Nachhaltigkeitswettbewerben. Es stellt die Möglichkeiten der konzeptionellen...

This paper considers competitive search equilibrium in a market for a good whose quality differs across sellers. Each seller knows the quality of the good that he or she is offering for sale, but buyers cannot observe quality directly. We thus have a “market for lemons” with competitive...