Partial adjustment and staggered price setting.: An article from: Journal of Money, Credit & Banking
Book Details
Author(s)Michael T. Kiley
PublisherOhio State University Press
ISBN / ASINB0008FCFZ0
ISBN-13978B0008FCFZ8
MarketplaceIndia 🇮🇳
Description
This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 2002. The length of the article is 7464 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: This paper compares Taylor-style staggered price setting to partial adjustment of prices (or Calvo staggering) in a small optimizing IS/LM model. In contrast to the overwhelming perception in the literature, the models are not similar for most parameterizations. In particular, the dynamic response of the economy to shocks is quite different in the two models, and the welfare cost of price rigidity is eight or more times larger in the Calvo model than in the Taylor model (for typical calibrations). Suggestions for calibrations under which the models are more similar are also presented.
Citation Details
Title: Partial adjustment and staggered price setting.
Author: Michael T. Kiley
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 2002
Publisher: Ohio State University Press
Volume: 34 Issue: 2 Page: 283(16)
Distributed by Thomson Gale
From the author: This paper compares Taylor-style staggered price setting to partial adjustment of prices (or Calvo staggering) in a small optimizing IS/LM model. In contrast to the overwhelming perception in the literature, the models are not similar for most parameterizations. In particular, the dynamic response of the economy to shocks is quite different in the two models, and the welfare cost of price rigidity is eight or more times larger in the Calvo model than in the Taylor model (for typical calibrations). Suggestions for calibrations under which the models are more similar are also presented.
Citation Details
Title: Partial adjustment and staggered price setting.
Author: Michael T. Kiley
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 2002
Publisher: Ohio State University Press
Volume: 34 Issue: 2 Page: 283(16)
Distributed by Thomson Gale
