On Implications of Micro Price Data for Macro Models

Frank Smets and Bartosz Maćkowiak

No 6961, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We review the recent literature that studies new, detailed micro data on prices. We discuss implications of the new micro data for macro models. We argue that the new micro data are helpful for macro models, but not decisive. There is no simple mapping from the frequency of price changes in micro data to impulse responses of prices and quantities to shocks. We discuss ideas that promise to deliver macro models matching the impulse responses seen in macro data while being broadly in line with micro data.

Keywords: Micro price data; Models of price setting; Real effects of nominal shocks; Sticky prices (search for similar items in EconPapers)
JEL-codes: E3 E5 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-cba and nep-mac
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Citations: View citations in EconPapers (46)

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Journal Article: On implications of micro price data for macro models (2008)
Working Paper: On implications of micro price data for macro models (2008)
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