(S,s) pricing: Does the heterogeneity wipe out the asymmetry on micro level?

Arbeitspapier

This paper presents a model of asymmetric (S,s) pricing. We investigate whether the asymmetry on micro level is carried over on macro level and what is the role of agent heterogeneity in the process. We look at two kinds of asymmetries: (i) asymmetric output responses monetary shocks and (ii) asymmetric responses to shocks during different phases of business cycle. We conclude that the first type of asymmetry can be attributed to the differences in adjustment bands and that heterogeneity softens this effect. The second type of asymmetry is the result of pricing behavior, thus of agent heterogeneity itself.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2010-19

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
• Subject: (S,s) pricing ; heterogeneity ; asymmetry ; four-state shocks ; Preisrigidität ; Monopolistischer Wettbewerb ; Betriebliche Preispolitik ; Schock ; Geldpolitik ; Konjunktur ; Anpassungskosten ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Babutsidze, Zakaria
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36659
• Last update: 10.03.2025, 11:42 AM CET