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dc.contributor.authorWeber, Henningen_US
dc.date.accessioned2011-03-22en_US
dc.date.accessioned2011-06-24T12:49:03Z-
dc.date.available2011-06-24T12:49:03Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/45902-
dc.description.abstractEmpirical data indicate that firms tend to have below-average productivity upon entry and that they tend to experience post-entry productivity growth. I present a New Keynesian model with growth in firm-specific productivity and firm turnover that captures these two phenomena. The model predicts that the optimal rate of long-run inflation is positive and equal to growth in firm-specific productivity. When linearized at positive optimal inflation, the model is observationally equivalent to the basic New Keynesian model with homogenous productivity linearized at zero inflation. Optimal stabilization policies are the same in both models, and the Taylor principle ensures determinacy in either model.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesKiel Working Papers 1685en_US
dc.subject.jelE01en_US
dc.subject.jelE31en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordOptimal long-run inflationen_US
dc.subject.keywordtrend inflationen_US
dc.subject.keywordheterogenous firmsen_US
dc.subject.stwOptimale Inflationsrateen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwUnternehmenswachstumen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwTheorieen_US
dc.titleOptimal inflation and firms' productivity dynamicsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn654583412en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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