Real Rigidities and Nominal Price Changes. (18th April 2016)
- Record Type:
- Journal Article
- Title:
- Real Rigidities and Nominal Price Changes. (18th April 2016)
- Main Title:
- Real Rigidities and Nominal Price Changes
- Authors:
- Klenow, Peter J.
Willis, Jonathan L. - Abstract:
- Abstract : Real rigidities can help to generate persistent effects of monetary policy shocks. We analyse an industry equilibrium model with two types of real rigidities: a 'micro' real rigidity from a kinked demand curve, and a 'macro' real rigidity due to sticky intermediate prices. We estimate key model parameters using micro data from the US CPI, which features big movements in relative prices within and across sectors. The micro real rigidity necessitates large idiosyncratic shocks to productivity. The macro real rigidity does not entail such large idiosyncratic shocks, and is consistent with the volatility of sectoral TFP growth.
- Is Part Of:
- Economica. Volume 83:Number 331(2016:Jul.)
- Journal:
- Economica
- Issue:
- Volume 83:Number 331(2016:Jul.)
- Issue Display:
- Volume 83, Issue 331 (2016)
- Year:
- 2016
- Volume:
- 83
- Issue:
- 331
- Issue Sort Value:
- 2016-0083-0331-0000
- Page Start:
- 443
- Page End:
- 472
- Publication Date:
- 2016-04-18
- Subjects:
- Economics -- Periodicals
330.05 - Journal URLs:
- http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-0335 ↗
http://onlinelibrary.wiley.com/ ↗ - DOI:
- 10.1111/ecca.12191 ↗
- Languages:
- English
- ISSNs:
- 0013-0427
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3656.900000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 1562.xml