Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110829
Authors: 
Cantelmo, Alessandro
Melina, Giovanni
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5328
Abstract: 
In a VAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or mildly positive. It significantly falls only if narrowly defined as the ratio between new house and nondurables prices. These findings survive three identification strategies and across subsamples. Then, they are rationalized via the estimation of a two-sector New-Keynesian model. Here, the degree of overall durables price stickiness is not dramatically lower than that of nondurables. Such macroeconometric results are close to recent microeconometric evidence. Moreover, they suggest that monetary policy is not very distortive of sectoral allocations.
Subjects: 
monetary policy
durables
nondurables
comovement
relative price
DSGE
Bayesian estimation
SVAR
sign restrictions
narrative approach
JEL: 
E52
E32
Document Type: 
Working Paper

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