INTEGRATING STICKY PRICES AND STICKY INFORMATION

• 成果类型: Article
• 署名作者: Dupor, Bill; Kitamura, Tomiyuki; Tsuruga, Takayuki
• 署名单位: University System of Ohio; Ohio State University; Kansai University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00017
• 发表日期: 2010-08
• 页码: 657-669
• 关键词: monetary-policy rules; macroeconomic stability; inflation; models; DYNAMICS; BEHAVIOR

摘要

Understanding the relationship between nominal and real variables, most notably inflation and cyclical output, is one of the fundamental questions of economics. Toward this understanding, we develop a model that integrates sticky prices and sticky information-a dual-stickiness model. We find that both rigidities are present in U. S. data. We also show that the dual-stickiness model's closest competitor is the hybrid New Keynesian model. For both models, current inflation depends in part on last period's inflation. The former model achieves this dependence endogenously through the interaction of the two rigidities rather than through backward-looking behavior. U.S. data support the dual-stickiness model over the hybrid model because lagged expectations terms appear in the former's inflation Euler equation. Finally, we show that it is quantitatively important to distinguish between the two by simulating a dynamic equilibrium model under each of the two inflation equations.