This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Sticky Prices and Indeterminacy Author info | Abstract | Publisher info | Download info | Related research | Statistics Mark Weder
Additional information is available for the following
registered author(s):
The aim of the present paper is to analyze the link between price rigidity and indeterminacy. This is done within a cash-in-advance economy from which we know that it exhibits indeterminacy at high degrees of relative risk aversion. I find that price stickiness reduces the scope of these sunspot equilibria: sluggish price adjustment requires degrees of relative risk aversion compatible with indeterminacy that prove too high to square with data.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Centre for Dynamic Macroeconomic Analysis in its series CDMA Working Paper Series with number
0601.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: Feb 2006Date of revision:
Handle: RePEc:san:cdmawp:0601Contact details of provider: Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL Phone: 01334 462420 Fax: 01334 462444 Email: Web page: http://www.st-andrews.ac.uk/cdma More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Jinyu Chen).
Keywords: Cash-in-advance economies ; Calvo-pricing ; sunspot equilibria. ; Other versions of this item:
Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Mark Bils & Peter J. Klenow, 2004.
"Some Evidence on the Importance of Sticky Prices ,"
Journal of Political Economy ,
University of Chicago Press, vol. 112(5), pages 947-985, October.
Other versions: Mark Weder, 2006.
"Interest Rate Rules and Macroeconomic Stabilization ,"
Working Papers
2006-01, University of Adelaide, School of Economics.
[Downloadable!]
Other versions: Hansen, Gary D., 1985.
"Indivisible labor and the business cycle ,"
Journal of Monetary Economics ,
Elsevier, vol. 16(3), pages 309-327, November.
[Downloadable!] (restricted)
Weder, Mark, 2006.
"Taylor Rules and Macroeconomic Instability or How the Central Bank Can Preempt Sunspot Expectations ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 38(3), pages 655-677, April.
[Downloadable!] (restricted)
Hansen, Lars Peter & Singleton, Kenneth J, 1983.
"Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns ,"
Journal of Political Economy ,
University of Chicago Press, vol. 91(2), pages 249-65, April.
[Downloadable!] (restricted)
Marvin Goodfriend & Robert G. King, 1998.
"The new neoclassical synthesis and the role of monetary policy ,"
Working Paper
98-05, Federal Reserve Bank of Richmond.
[Downloadable!]
Other versions: Narayana R. Kocherlakota, 1996.
"The Equity Premium: It's Still a Puzzle ,"
Journal of Economic Literature ,
American Economic Association, vol. 34(1), pages 42-71, March.
[Downloadable!] (restricted)
Other versions: Roger E. A. Farmer, 1999.
"Macroeconomics of Self-fulfilling Prophecies, 2nd Edition ,"
MIT Press Books ,
The MIT Press,
edition 2, volume 1, number 0262062038.
Charles T. Carlstrom & Timothy S. Fuerst, 2000.
"Forward-looking versus backward-looking Taylor rules ,"
Working Paper
0009, Federal Reserve Bank of Cleveland.
[Downloadable!]
Sbordone, Argia M., 2002.
"Prices and unit labor costs: a new test of price stickiness ,"
Journal of Monetary Economics ,
Elsevier, vol. 49(2), pages 265-292, March.
[Downloadable!] (restricted)
Other versions:
Argia M. Sbordone, 2001.
"Prices and Unit Labor Costs: A New Test of Price Stickiness ,"
Departmental Working Papers
200112, Rutgers University, Department of Economics.
[Downloadable!] Argia M. Sbordone, 2001.
"Prices and Unit Labor Costs: A New Test of Price Stickiness ,"
Departmental Working Papers
199822, Rutgers University, Department of Economics.
[Downloadable!] Sbordone, Argia, 1998.
"Prices and Unit Labour Costs: A New Test of Price Stickiness ,"
Seminar Papers
653, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Sbordone, A.M., 1998.
"Prices and Unit Labor Costs: a New Test of Price Stickiness ,"
Papers
653, Stockholm - International Economic Studies.
Christiano, Lawrence J & Eichenbaum, Martin, 1995.
"Liquidity Effects, Monetary Policy, and the Business Cycle ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 27(4), pages 1113-36, November.
[Downloadable!] (restricted)
Other versions:
Martin Eichenbaum & Lawrence J. Christiano, 1992.
"Liquidity Effects, Monetary Policy, and the Business Cycle ,"
NBER Working Papers
4129, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Lawrence J. Christiano & Martin Eichenbaum, 1992.
"Liquidity effects, monetary policy, and the business cycle ,"
Discussion Paper / Institute for Empirical Macroeconomics
70, Federal Reserve Bank of Minneapolis.
[Downloadable!] Lawrence J. Christiano & Martin Eichenbaum, 1992.
"Liquidity effects, monetary policy and the business cycle ,"
Working Paper Series, Macroeconomic Issues
92-15, Federal Reserve Bank of Chicago.
Thomas Lubik & Massimiliano Marzo, 2003.
"An Inventory of Simple Monetary Policy Rules in a New Keynesian Macroeconomic Model ,"
Economics Working Paper Archive
500, The Johns Hopkins University,Department of Economics.
[Downloadable!]
Other versions: Calvo, Guillermo A., 1983.
"Staggered prices in a utility-maximizing framework ,"
Journal of Monetary Economics ,
Elsevier, vol. 12(3), pages 383-398, September.
[Downloadable!] (restricted)
Wen, Yi, 1998.
"Capacity Utilization under Increasing Returns to Scale ,"
Journal of Economic Theory ,
Elsevier, vol. 81(1), pages 7-36, July.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Kevin X.D. Huang & Qinglai Meng, 2007.
"Distance to Frontier and the Big Swings of the Unemployment Rate: What Room is Left for Monetary Policy? ,"
Kiel Working Papers
1348, Kiel Institute for the World Economy.
[Downloadable!]
Kevin X.D. Huang & Qinglai Meng, 2007.
"Is Forward-Looking Inflation Targeting Destabilizing? The Role of Policy's Response to Current Output under Endogenous Investment ,"
Working Papers
0704, Department of Economics, Vanderbilt University.
[Downloadable!]
Access and
download statistics Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.
This page was last updated on 2009-11-25.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .