Welfare implications of Calvo vs. Rotemberg-pricing assumptions

DOI10.1016/J.ECONLET.2008.02.008zbMath1255.91132OpenAlexW3126087892MaRDI QIDQ1934867

Giovanni Lombardo, David Vestin

Publication date: 29 January 2013

Published in: Economics Letters (Search for Journal in Brave)

Full work available at URL: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp770.pdf

zbMATH Keywords

second order approximationinflationwelfareCalvo price adjustmentRotemberg price adjustment

Mathematics Subject Classification ID

Stochastic models in economics (91B70) Macroeconomic theory (monetary models, models of taxation) (91B64) Economic growth models (91B62) Welfare economics (91B15)

Related Items (6)

Revisiting the optimal inflation rate with downward nominal wage rigidity: the role of heterogeneity ⋮ The inflation bias under Calvo and Rotemberg pricing ⋮ Is Rotemberg pricing justified by macro data? ⋮ Real wage rigidities and disinflation dynamics: Calvo vs. Rotemberg pricing ⋮ Exact likelihood computation for nonlinear DSGE models with heteroskedastic innovations ⋮ Calvo vs. Rotemberg in a trend inflation world: an empirical investigation

Uses Software

• Dynare

Cites Work

• Optimal fiscal and monetary policy under sticky prices.
• The welfare loss from unstable inflation
• Monopolistic Price Adjustment and Aggregate Output

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