Sticky Price Models, Durable Goods, and Real Wage Rigidities

• Tipo: Artigo em Revista Científica Internacional
• Data: 2019

Autores

Cenesiz, MA (Autor) FEP; Guimaraes, L (Autor) Outra

Revista

Título: Journal of Money, Credit and Banking

Vol. 51

Páginas: 721-737

ISSN: 0022-2879

Editora: Wiley-Blackwell

Indexação

ISI Web of Knowledge - 0 Citações

Outras Informações

ID Authenticus: P-00Q-CPX

DOI: 10.1111/jmcb.12499

Abstract (EN): The standard two-sector New Keynesian model with durable goods is at odds with conventional wisdom and vector autoregression (VAR) evidence: Following a monetary shock, the model generates (i) either negative or no comovement across sectoral outputs and (ii) aggregate neutrality of money when durable goods' prices are flexible. We reconcile theory with evidence by incorporating real wage rigidities into the standard model: As long as durable goods' prices are more flexible than nondurable goods' prices, we obtain positive sectoral comovement and, thus, aggregate nonneutrality of money.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 17