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- W4362467105 abstract "We propose a model that reconciles microeconomic evidence of frequent and large price changes with sizable monetary non-neutrality. Firms incur separate lump-sum costs to change prices and to gather and process some information about marginal costs. Additional relevant information is continuously available and can be factored into pricing decisions at no cost. We estimate the model by Simulated Method of Moments, using price-setting statistics for the US economy. The model with free idiosyncratic and costly aggregate information fits well both targeted and untargeted microeconomic moments and generates almost three times as much monetary non-neutrality as the Calvo model. (JEL D21, D83, E23, E31, L11)" @default.
- W4362467105 created "2023-04-05" @default.
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- W4362467105 date "2023-04-01" @default.
- W4362467105 modified "2023-09-30" @default.
- W4362467105 title "Persistent Monetary Non-neutrality in an Estimated Menu Cost Model with Partially Costly Information" @default.
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- W4362467105 doi "https://doi.org/10.1257/mac.20190241" @default.
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