Staggered price setting, translog preferences, and endogenous persistence

• 成果类型: Article
• 署名作者: Bergin, PR; Feenstra, RC
• 署名单位: University of California System; University of California Davis; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(00)00004-0
• 发表日期: 2000
• 页码: 657-680
• 关键词: endogenous persistence; staggered contracts; translog preferences

摘要

This paper generates persistent real effects of a monetary disturbance in the context of staggered price setters. The model combines two related and reinforcing features: a translog demand structure and a particular input-output production structure, These features offer a rationale why a firm, when computing its own optimal contract price, is influenced by the prices set in other overlapping contracts. Practically, the two features interact in a positive manner and provide a way to generate significant endogenous persistence. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: F32; E52.