Journal ArticleDOI
Staggered prices in a utility-maximizing framework
TLDR
In this article, the authors developed a model of staggered prices along the lines of Phelps (1978) and Taylor (1979, 1980), but utilizing an analytically more tractable price-setting technology.About:
This article is published in Journal of Monetary Economics.The article was published on 1983-09-01. It has received 8580 citations till now. The article focuses on the topics: Nominal rigidity & Taylor rule.read more
Citations
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Monetary policy for an open economy: an alternative framework with optimizing agents and sticky prices
TL;DR: This article proposed an alternative approach for constructing open-economy macroeconomic models by treating imports not as finished consumer goods but rather as raw-material inputs to the home economy's productive process.
ReportDOI
Monetary Shocks and Real Exchange Rates in Sticky Price Models of International Business Cycles
Varadarajan Chari,Varadarajan Chari,Varadarajan Chari,Patrick J. Kehoe,Patrick J. Kehoe,Patrick J. Kehoe,Ellen R. McGrattan,Ellen R. McGrattan,Ellen R. McGrattan +8 more
TL;DR: This article developed a sticky price model with price discriminating monopolists, which produces deviations from the law of one price for traded goods and showed that to a large extent these movements are driven by deviations from purchasing power parity.
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The cyclicality of sales, regular and effective prices: business cycle and policy implications
TL;DR: In this article, the cyclical properties of sales, regular price changes and average prices paid by consumers were studied using data on prices and quantities sold for numerous retailers across many U.S. metropolitan areas.
ReportDOI
The pruned state-space system for non-linear dsge models: theory and empirical applications
TL;DR: In this paper, the stability of the pruned approximation up to third order was investigated and closed-form expressions for Orst and second unconditional moments and impulse response functions were provided for higher-order perturbation approximations to DSGE models.
Journal ArticleDOI
Explaining the Exchange Rate Pass-Through in Different Prices
TL;DR: This article examined the performance of a variety of new open economy macroeconomic models in explaining the exchange rate pass-through in a wide range of prices and found that the best-fitting model incorporates a number of features highlighted by different strands of the literature: sticky prices, sticky wages, distribution costs and a combination of local and producer currency pricing (PCP).
References
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Book
The Theory of Matrices
TL;DR: In this article, the Routh-Hurwitz problem of singular pencils of matrices has been studied in the context of systems of linear differential equations with variable coefficients, and its applications to the analysis of complex matrices have been discussed.
Journal ArticleDOI
Aggregate Dynamics and Staggered Contracts
TL;DR: In this article, the authors show that staggered wage contracts as short as 1 year are capable of generating the type of unemployment persistence which has been observed during postwar business cycles in the United States.
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"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule
Thomas J. Sargent,Neil Wallace +1 more
TL;DR: In this paper, alternative monetary policies are analyzed in an ad hoc macroeconomic model in which the public's expectations about prices are rational, and it turns out that the probility distribution of output is independent of the particular deterministic money supply rule in effect.
Book
Public Investment, the Rate of Return, and Optimal Fiscal Policy
Kenneth J. Arrow,Mordecai Kurz +1 more
TL;DR: In this paper, a theory of "controllability" is developed and injected into public economics and growth models to analyze optimal public expenditures in the context of modern growth theory, and a model of optimal growth with public capital is proposed.