Arbeitspapier
Generalized Taylor and generalized Calvo price and wagesetting: Micro evidence with macro implications
The Generalized Calvo and the Generalized Taylor models of price and wage-setting are, unlike the standard Calvo and Taylor counter-parts, exactly consistent with the distribution of durations observed in the data. Using price and wage micro-data from a major euro-area economy (France), we develop calibrated versions of these models. We assess the consequences for monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is found to help rationalizing the hump-shaped and persistent response of inflation, without resorting to the counterfactual assumption of systematic wage and price indexation.
- Language
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Englisch
- Bibliographic citation
-
Series: Cardiff Economics Working Papers ; No. E2011/25
- Classification
-
Wirtschaft
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Monetary Policy
Wages, Compensation, and Labor Costs: General
- Subject
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contract length
steady state
hazard rate
Calvo
Taylor
wage-setting
price-setting
Lohnbildung
Betriebliche Preispolitik
Dynamisches Gleichgewicht
Modellierung
Geldpolitik
Transmissionsmechanismus
Inflation
Theorie
Frankreich
- Event
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Geistige Schöpfung
- (who)
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Dixon, Huw
Le Bihan, Hervé
- Event
-
Veröffentlichung
- (who)
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Cardiff University, Cardiff Business School
- (where)
-
Cardiff
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dixon, Huw
- Le Bihan, Hervé
- Cardiff University, Cardiff Business School
Time of origin
- 2011
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Generalized Taylor’s formula for power fractional derivatives
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Taylor’s power law and reduced-rank vector generalized linear models
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Generalized curvatures
Generalized plasticity
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