B. Maćkowiak, E. Moench, and M. Wiederholt. Journal of Monetary Economics, 56, Supplement (0):
S78 - S99(2009)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).
DOI: 10.1016/j.jmoneco.2009.06.012
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.
Description
ScienceDirect.com - Journal of Monetary Economics - Sectoral price data and models of price setting
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)
%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
}