| dc.creator |
McCallum, Bennett T. |
|
| dc.date |
2007 |
|
| dc.date.accessioned |
2013-10-16T06:57:09Z |
|
| dc.date.available |
2013-10-16T06:57:09Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/17873 |
|
| dc.identifier |
ppn:535022026 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/17873 |
|
| dc.description |
It is clear that at present various versions of the Calvo (1983) model of price adjustment are dominant in monetary policy analysis?see, e.g., Woodford (2003). This is true despite well-known criticisms including Mankiw (2001) or Mankiw and Reis (2002) and the well-documented need for the addition of ad-hoc features if actual inflation and output data are to be matched. Accordingly, there is ample reason, to give consideration to alternative models. In this paper, a new look is given to the P-bar model utilized by McCallum and Nelson (1999a, 1999b), based on previous work by Mussa (1981) and others. Relative to the Calvo model, the P-bar specification has three significant advantages: it satisfies the strict version of the natural rate hypothesis; it relies on costs of adjusting output, which are more tangible than menu costs of changing prices; and its basic version produces more realistic autocorrelation patterns than does the basic Calvo specification. The present paper develops these comparisons more completely and systematically than in previous work. |
|
| dc.language |
eng |
|
| dc.publisher |
Kiel Institute for the World Economy (IfW) Kiel |
|
| dc.relation |
Kieler Arbeitspapiere 1361 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
ddc:330 |
|
| dc.title |
Basic Calvo and P-Bar Models of Price Adjustment: A Comparison |
|
| dc.type |
doc-type:workingPaper |
|