@techreport{Dixon2009unifed,
abstract = {This paper argues that the cross-sectional approach to durations is essential to understand nominal rigidity because this captures the fact that price-spells are generated by firms' price-setting behavior. Since the distribution of durations is dominated by a proliferation of short contracts, the cross-sectional measure corrects for this by length-biased sampling. Modelling the price-spell durations in this way enables us to see how Taylor, Calvo and their generalizations relate to each other, and enable us to compare price-setting behavior for a given distribution of durations. We also show how the micro-data can be directly related to the macroeconomic pricing models in this setting.},
address = {Cardiff},
author = {Huw David Dixon},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E50; 330; price-spell; steady state; hazard rate; Calvo; Taylor; Preisrigidit\"{a}t; Lohnrigidit\"{a}t; Station\"{a}re Volkswirtschaft; Preistheorie; Theorie},
language = {eng},
number = {E2009/20},
publisher = {Cardiff Univ, Cardiff Business School, Economics Section},
title = {A unifed framework for understanding and comparing dynamic wage and price setting models},
type = {Cardiff Economics Working Papers},
url = {http://hdl.handle.net/10419/65749},
year = {2009}
}
