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Journal ArticleDOI

Staggered prices in a utility-maximizing framework

Guillermo A. Calvo
- 01 Sep 1983 - 
- Vol. 12, Iss: 3, pp 383-398
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.
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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.

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Citations
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Microfoundations of Macroeconomic Price Adjustment: Survey Evidence from Swedish Firms

TL;DR: In this paper, the authors present the results of a survey on price-setting behavior conducted on a large random sample of Swedish firms and point out the importance of the long-term relations with customers for the rigidity of prices.
Posted Content

Optimal Inflation Stabilization in a Medium-Scale Macroeonomic Model

TL;DR: In this paper, the authors characterize the Ramsey-optimal monetary policy in a medium-scale macroeconomic model that has been estimated to fit well postwar US business cycles and find that mild deflation is Ramsey optimal in the long run.
Journal ArticleDOI

Performance pay and changes in U.S. labor market dynamics

TL;DR: A shift in the design of labor compensation occurred at around the mid-1980s in the U.S. and deals with an increased role of performance pay in driving the cyclical movements of wages as mentioned in this paper.
Journal ArticleDOI

Forecasting performance of an open economy DSGE model

TL;DR: In this article, the forecasting performance of an open economy dynamic stochastic general equilibrium (DSGE) model, estimated with Bayesian methods, for the Euro area during 1994Q1-2002Q4 was analyzed.
Journal ArticleDOI

The Persistence of Inflation in OECD Countries: A Fractionally Integrated Approach

TL;DR: In this paper, the authors consider the inflation rates of 21 OECD countries which are modelled as fractionally integrated (FI) processes and show that FI can appear in inflation rates after aggregating individual prices from firms that face different costs of adjusting their prices.
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.
Journal ArticleDOI

"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule

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

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.
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