Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36659
Authors: 
Babutsidze, Zakaria
Year of Publication: 
2010
Series/Report no.: 
Economics Discussion Papers 2010-19
Abstract: 
This paper presents a model of asymmetric (S,s) pricing. We investigate whether the asymmetry on micro level is carried over on macro level and what is the role of agent heterogeneity in the process. We look at two kinds of asymmetries: (i) asymmetric output responses monetary shocks and (ii) asymmetric responses to shocks during different phases of business cycle. We conclude that the first type of asymmetry can be attributed to the differences in adjustment bands and that heterogeneity softens this effect. The second type of asymmetry is the result of pricing behavior, thus of agent heterogeneity itself.
Subjects: 
(S,s) pricing
heterogeneity
asymmetry
four-state shocks
JEL: 
E31
E37
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Working Paper

Files in This Item:
File
Size
368.13 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.