Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153110
Authors: 
Dixon, Huw
Year of Publication: 
2006
Series/Report no.: 
ECB Working Paper 676
Abstract: 
This paper shows how any steady state distribution of ages and related hazard rates can be represented as a distribution across firms of completed contract lengths. The distribution is consistent with a Generalised Taylor Economy or a Generalised Calvo model with duration dependent reset probabilities. Equivalent distributions have different degrees of forward lookingness and imply different behaviour in response to monetary shocks. We also interpret data on the proportions of firms changing price in a period, and the resultant range of average contract lengths.
Subjects: 
Calvo
Contract length
hazard rate
steady state
Taylor
JEL: 
E50
Document Type: 
Working Paper

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