%0 Journal Article %1 Maćkowiak2009S78 %A Maćkowiak, Bartosz %A Moench, Emanuel %A Wiederholt, Mirko %D 2009 %J Journal of Monetary Economics %K dynamic_factor_model monetary_transmission sectoral_data sticky_expectations sticky_prices %N 0 %P S78 - S99 %R 10.1016/j.jmoneco.2009.06.012 %T Sectoral price data and models of price setting %U http://www.sciencedirect.com/science/article/pii/S0304393209000877 %V 56, Supplement %X In the median sector, 100 percent of the long-run response of the sectoral price index to a sector-specific shock occurs in the month of the shock. The standard Calvo model and the standard sticky-information model can match this finding only under extreme assumptions concerning the profit-maximizing price. The rational-inattention model of Maćkowiak and Wiederholt 2009a. Optimal sticky prices under rational inattention. American Economic Review 99, 769–803 can match this finding without an extreme assumption concerning the profit-maximizing price. Furthermore, there is little variation across sectors in the speed of response of sectoral price indexes to sector-specific shocks. The rational-inattention model matches this finding, while the Calvo model predicts too much cross-sectional variation.

@article{Maćkowiak2009S78, abstract = {In the median sector, 100 percent of the long-run response of the sectoral price index to a sector-specific shock occurs in the month of the shock. The standard Calvo model and the standard sticky-information model can match this finding only under extreme assumptions concerning the profit-maximizing price. The rational-inattention model of Maćkowiak and Wiederholt [2009a. Optimal sticky prices under rational inattention. American Economic Review 99, 769–803] can match this finding without an extreme assumption concerning the profit-maximizing price. Furthermore, there is little variation across sectors in the speed of response of sectoral price indexes to sector-specific shocks. The rational-inattention model matches this finding, while the Calvo model predicts too much cross-sectional variation. }, added-at = {2013-05-08T23:29:56.000+0200}, author = {Maćkowiak, Bartosz and Moench, Emanuel and Wiederholt, Mirko}, biburl = {https://www.bibsonomy.org/bibtex/2719343067801fd77558b81ccabe44224/jp}, description = {ScienceDirect.com - Journal of Monetary Economics - Sectoral price data and models of price setting}, doi = {10.1016/j.jmoneco.2009.06.012}, interhash = {f751e4545dd47b05201d1e28bf1c265c}, intrahash = {719343067801fd77558b81ccabe44224}, issn = {0304-3932}, journal = {Journal of Monetary Economics }, keywords = {dynamic_factor_model monetary_transmission sectoral_data sticky_expectations sticky_prices}, note = {Supplement issue: December 12-13, 2008 Research Conference on 'Monetary Policy under Imperfect Information' Sponsored by the Swiss National Bank (http://www.snb.ch) and Study Center Gerzensee (www.szgerzensee.ch) }, number = 0, pages = {S78 - S99}, timestamp = {2013-05-08T23:29:56.000+0200}, title = {Sectoral price data and models of price setting }, url = {http://www.sciencedirect.com/science/article/pii/S0304393209000877}, volume = {56, Supplement}, year = 2009 }