EconStor >
Cardiff University >
Cardiff Business School, Cardiff University >
Cardiff Economics Working Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/65776
  
Title:Generalized Taylor and generalized Calvo price and wagesetting: Micro evidence with macro implications PDF Logo
Authors:Dixon, Huw
Le Bihan, Hervé
Issue Date:2011
Series/Report no.:Cardiff Economics Working Papers E2011/25
Abstract:The Generalized Calvo and the Generalized Taylor models of price and wage-setting are, unlike the standard Calvo and Taylor counter-parts, exactly consistent with the distribution of durations observed in the data. Using price and wage micro-data from a major euro-area economy (France), we develop calibrated versions of these models. We assess the consequences for monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is found to help rationalizing the hump-shaped and persistent response of inflation, without resorting to the counterfactual assumption of systematic wage and price indexation.
Subjects:contract length
steady state
hazard rate
Calvo
Taylor
wage-setting
price-setting
JEL:E31
E32
E52
J30
Document Type:Working Paper
Appears in Collections:Cardiff Economics Working Papers

Files in This Item:
File Description SizeFormat
671544020.pdf483.1 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/65776

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