Sectoral Price Facts in a Sticky-Price Model

• 成果类型: Article
• 署名作者: Carvalho, Carlos; Lee, Jae Won; Park, Woong Yong
• 署名单位: University of Virginia; Seoul National University (SNU); Seoul National University (SNU)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20190205
• 发表日期: 2021
• 页码: 216-256
• 关键词: intermediate inputs; nominal rigidities; monetary-policy; business-cycle; persistence; shocks; nonneutrality

摘要

We develop a multisector sticky-price DSGE model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages and a (standard) monetary policy rule contribute to a slow response of prices to aggregate shocks. In turn, labor market segmentation at the sectoral level induces within-sector strategic substitutability in price-setting decisions, which helps the model deliver a fast response of prices to sector-specific shocks. We estimate the model using aggregate and sectoral price and quantity data for the United States and find that it accounts well for a range of sectoral price facts.