Welfare implications of Calvo vs. Rotemberg-pricing assumptions

DOI10.1016/J.ECONLET.2008.02.008zbMATH Open1255.91132OpenAlexW3126087892MaRDI QIDQ1934867FDOQ1934867

Authors: 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

Recommendations

• The inflation bias under Calvo and Rotemberg pricing
• The welfare loss from unstable inflation
• Real wage rigidities and disinflation dynamics: Calvo vs. Rotemberg pricing
• Second-order approximation to the Rotemberg model around a distorted steady state
• Is Rotemberg pricing justified by macro data?

zbMATH Keywords

inflationwelfaresecond order approximationCalvo price adjustmentRotemberg price adjustment

Mathematics Subject Classification ID

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

Cites Work

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

Cited In (8)

• Exact likelihood computation for nonlinear DSGE models with heteroskedastic innovations
• 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
• Second-order approximation to the Rotemberg model around a distorted steady state
• Revisiting the optimal inflation rate with downward nominal wage rigidity: the role of heterogeneity
• Calvo vs. Rotemberg in a trend inflation world: an empirical investigation
• The welfare loss from unstable inflation

Uses Software

• Dynare

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