Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37393
Authors: 
Sabrowski, Henry
Bredemeier, Christian
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: International Price Dispersion A12-V2
Abstract: 
This paper provides an empirical comparison of the sticky-price and the sticky information Phillips curves on the basis of second moments of inflation for six countries, the US, the UK, Germany, France, Canada, and Japan. We evaluate the models' abilities to match empirical second moments of inflation evaluating moment distributions generated by model simulation. The absolute deviation of model moments to data moments is lower for sticky information but the joint density of the observed moments is higher for sticky prices. We also find that sticky information would need an unusually high degree of real rigidity to perform similar to sticky prices.
Subjects: 
Phillips curve
Sticky information
Sticky prices
JEL: 
E31
E32
E37
Document Type: 
Conference Paper

Files in This Item:
File
Size





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