EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

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

http://hdl.handle.net/10419/19002
  
Title:Output effects of inflation with fixed price- and quantity-adjustment costs PDF Logo
Authors:Danziger, Leif
Issue Date:2005
Series/Report no.:CESifo working papers 1538
Abstract:With fixed costs of price and quantity adjustment, output effects of inflation depend on the elasticity of the firm?s marginal real revenue. If the elasticity always exceeds minus unity, then output decreases with inflation, while if the elasticity is always less than minus unity, then output increases with inflation. In the special case that the elasticity always equals minus unity, then output is independent of inflation. This is the case if demand is derived from a logquadratic utility function.
JEL:E31
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1538.pdf292.92 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/19002

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