Non-uniform staggered prices and output persistence

Johan Söderberg

No 2009:19, Working Paper Series from Uppsala University, Department of Economics

Abstract: Staggered prices are a fundamental building block of New Keynesian dynamic stochastic general equilibrium models. In the standard model, prices are uniformly staggered but recent empirical evidence suggest that deviations from uniform staggering are common, This paper analyzes how synchronization of price changes affects the response to monetary policy shocks. I find that even large deviations from uniform staggering have small effects on the response in output. Aggregate dynamics in a model of uniform staggering may serve well as an approximation to a more complicated model with some degree of synchronization in price setting.

Keywords: Price setting; Staggering; Synchronization; Persistence (search for similar items in EconPapers)
JEL-codes: E31 E32 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-01-21
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-opm
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Related works:
Journal Article: Nonuniform Staggered Prices and Output Persistence (2013)
Journal Article: Nonuniform Staggered Prices and Output Persistence (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2009_019

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