. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be … find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand …

. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be … find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand …

demand shock: it increases output, employment and inflation in the short run and has no effects in the long run. The dynamics …-run volatility due to demand shocks, in line with existing time-series evidence. The paper also develops a simple method to solve …

regarding aggregate productivity. The shock to this public signal, or "news shock," has the features of an aggregate demand … employment. A calibrated version of the model is able to generate realistic amounts of short-run volatility due to demand shocks …