Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/4548
Type: Working Paper
Title: Persistent monetary non-neutrality in an estimated menu-cost model with partially costly information
Author: Bonomo, Marco Antonio Cesar
Carvalho, Carlos
Garcia, René
Malta, Vivian
Rigato, Rodolfo
Publication Date: 2021
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. Ad ditional 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 U.S. 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.
Keywords (english terms): Monetary non-neutrality
Menu costs
Information costs
Partial information
Inattention
Optimal price setting
State-dependent pricing
Time-dependent pricing
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR
Appears in Collections:Coleção de Working Papers

Files in This Item:
File Description SizeFormat 
R_Working paper_2017_Persistent Monetary Non-neutrality_TC.pdfR_Working paper_2017_Persistent Monetary Non-neutrality_TC838.6 kBAdobe PDFView/Open

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