EconPapers    
Economics at your fingertips  
 

What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?

Luis Alvarez

Economics - The Open-Access, Open-Assessment E-Journal, 2008, vol. 2, No 2008-19, 36 pages

Abstract: This paper surveys the current state of global empirical research on price setting behaviour at the firm level to evaluate the adequacy of pricing models used in the macro literature. To that end, it analyses the implications of 25 theoretical models (sticky information, menu costs, time dependent, costs of adjustment and customer anger models) in terms of their ability to match the key micro stylised facts. It is found that the explanatory power differs considerably across models and that many popular models are at odds with the main micro features, suggesting the need to further refine modelling strategies.

Keywords: Pricing models; micro data; Phillips Curve; hazard rate; time dependent; menu costs; sticky information (search for similar items in EconPapers)
JEL-codes: E31 D40 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.5018/economics-ejournal.ja.2008-19
https://www.econstor.eu/bitstream/10419/18032/1/economics_2008-19.pdf (application/pdf)

Related works:
Working Paper: What do micro price data tell us on the validity of the New Keynesian Phillips Curve? (2007) Downloads
Working Paper: What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve? (2007) Downloads
Working Paper: What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve? (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:7332

Access Statistics for this article

Economics - The Open-Access, Open-Assessment E-Journal is currently edited by Dennis J. Snower

More articles in Economics - The Open-Access, Open-Assessment E-Journal from Kiel Institute for the World Economy (IfW) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-01-14
Handle: RePEc:zbw:ifweej:7332