@techreport{Yao2009Real,
abstract = {This paper uses the Bayesian approach to solve and estimate a New Keynesian model augmented by a generalized Phillips curve, in which the shape of the price reset hazards can be identi&#x2026;ed using aggregate data. My empirical result shows that a constant hazard function is easily rejected by the data. The empirical hazard function for post-1983 periods in the U.S. is consistent with micro evidence obtained using data from similar periods. The hazard for pre-1983 periods, however, exhibits a remarkable increasing pattern, implying that pricing decisions are characterized by both time- and state-dependent aspects. Additionally, real rigidity plays an important role, but not as big a role as found in empirical studies using limited information methods.},
address = {Berlin},
author = {Fang Yao},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E12; E31; 330; Real rigidity; Nominal rigidity; Hazard function; Bayesian estimation; Preisrigidit\"{a}t; Statistische Bestandsanalyse; Bayes-Statistik; Ungleichgewichtstheorie; Phillips-Kurve; Sch\"{a}tzung; USA},
language = {eng},
number = {2009,057},
publisher = {SFB 649, Economic Risk},
title = {Real and nominal rigidities in price setting: A bayesian analysis using aggregate data},
type = {SFB 649 discussion paper},
url = {http://hdl.handle.net/10419/39298},
year = {2009}
}
