Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72658
Authors: 
Dixon, Huw D.
Tian, Kun
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4226
Abstract: 
In this paper, we see how much the average monthly frequency of price changes ties down the behavior of firms in steady-state in terms of the average length of price-spells across firms. We use the UK CPI data at the aggregate and sectoral level and find that the actual mean is about twice the theoretical minimum consistent with the observed frequency. We estimate the distribution using the hazard function and find that, despite the micro differences, the artificial Calvo distributions generated using the sectoral frequencies result in very similar impulse responses to the estimated hazards when used in the Smets-Wouters (2003) model.
Subjects: 
price-spell
steady state
duration
JEL: 
E50
Document Type: 
Working Paper

Files in This Item:
File
Size





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