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Comment on: "Inflation dynamics with search frictions: A structural econometric analysis" by Krause, Lopez-Salido and Lubik

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  • Casares, Miguel

Abstract

The implications of search frictions on the inflation dynamics are shown here for the case with wage adjustments typically belonging to the New Keynesian model, not to the Mortensen-Pissarides framework. In that model variant, I identify the role of search frictions by an additional term entering the slope coefficient of the inflation equation. After a numerical exercise, I find results that are in line with those obtained by Krause et al. [2008. Inflation dynamics with search frictions: a structural econometric analysis. Journal of Monetary Economics 55, doi:10.1016/j.jmoneco.2008.05.003.].

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  • Casares, Miguel, 2008. "Comment on: "Inflation dynamics with search frictions: A structural econometric analysis" by Krause, Lopez-Salido and Lubik," Journal of Monetary Economics, Elsevier, vol. 55(5), pages 917-920, July.
    • Handle: RePEc:eee:moneco:v:55:y:2008:i:5:p:917-920
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    Cited by:

    1. Casares, Miguel, 2013. "On firm-level, industry-level, and aggregate employment fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 37(12), pages 2963-2978.

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