Prices and Unit Labor Costs: a New Test of Price Stickiness

Argia Sbordone

Working Papers from Stockholm - International Economic Studies

Abstract: This paper investigates the predictions of a simple optimizing model of nominal price rigidity for the aggregate price level and the dynamics of inflation. The author compares the model's predictions with those of a perfectly competitive, flexible price 'benchmark' model (corresponding to the model of pricing assumed in standard real business cycle models), and evaluate how much the introduction of nominal rigidities improves the model's fit with the data.

Keywords: ECONOMIC MODELS; PREVISIONS; PRICES (search for similar items in EconPapers)
JEL-codes: C53 D40 E37 (search for similar items in EconPapers)
Pages: 23 pages
Date: 1998
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Citations: View citations in EconPapers (96)

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Related works:
Journal Article: Prices and unit labor costs: a new test of price stickiness (2002)
Working Paper: Prices and Unit Labor Costs: A New Test of Price Stickiness (2001)
Working Paper: Prices and Unit Labor Costs: A New Test of Price Stickiness (2001)
Working Paper: Prices and Unit Labor Costs: A New Test of Price Stickiness (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:stocin:653

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