Arbeitspapier

Information flows and aggregate persistence

Models with imperfect information that generate persistent monetary nonneutrality predominantly rely on assumptions leading to substantial heterogeneity of information across price-setters. This paper develops a quantitative general equilibrium model in which the degree of heterogeneity of information is determined endogenously. In the model, firms use two technologies to acquire information: costly updating to full information and costless learning from publicly observed market signals. Price changes of firms that update information infrequently are synchronized with market signals. This leads to an externality whereby less frequent updating increases the information conveyed by prices and quantities. When the model is calibrated to moments from a panel of BLS commodity sectors, it is found that the private value of costly updating to full information is close to zero, market signals are informative, and the real effects of monetary shocks are small.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Working Paper ; No. 2009-11

Klassifikation
Wirtschaft
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Thema
Business fluctuations and cycles
Inflation and prices
ransmission of monetary policy
Betriebliche Preispolitik
Unvollkommene Information
Geldpolitik
Schock
Transmissionsmechanismus
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kryvtsov, Oleksiy
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2009

DOI
doi:10.34989/swp-2009-11
Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kryvtsov, Oleksiy
  • Bank of Canada

Entstanden

  • 2009

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