Staggered price-setting, staggered wage-setting, and business cycle persistence

• 成果类型: Article
• 署名作者: Huang, KXD; Liu, Z
• 署名单位: Emory University; Utah System of Higher Education; Utah State University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(01)00109-X
• 发表日期: 2002
• 页码: 405-433
• 关键词: staggered contracts; business cycle persistence; monetary policy

摘要

Staggered price-setting and staggered wage-setting are commonly viewed as similar mechanisms in generating persistent real effects of monetary shocks. In this paper, we distinguish the two mechanisms in a dynamic stochastic general equilibrium framework. We show that, although the dynamic price-setting and wage-setting equations are alike, a key parameter governing persistence is linked to the underlying preferences and technologies in different ways. With reasonable parameter values, the staggered price mechanism by itself is incapable of, while the staggered wage mechanism plays an important role in generating persistence. (C) 2002 Elsevier Science B.V. All rights reserved.