Suchergebnisse

How does market concentration affect the potency of monetary policy? To address this question we embed a dynamic oligopolistic game into a general-equilibrium macroeconomic model. We provide a sufficient-statistic formula for the response to monetary shocks involving demand elasticities, concentration and markups. We discipline our model with evidence on pass-through and find that higher concentration amplifies nonneutrality and stickiness. We isolate strategic effects from oligopoly by comparing our model to one with naive firms. We derive an exact Phillips curve featuring novel higher-order terms, but show that a standard New Keynesian one recalibrated with higher stickiness provides an excellent approximation. (JEL D43, E12, E21, E31, E43, E51, E52)

Contents -- Preface -- Part I. On Learning by Asking -- Chapter 1. Why Study Price Stickiness? Why This Way? -- Chapter 2. Antecendents -- Chapter 3. Research Design -- Part II. The Basic Findings -- Chapter 4. Wouldn't It Be Nice to Know...? -- Chapter 5. Basic Results on the Twelve Theories -- Part III. Detailed Findings on Each Theory -- Chapter 6. Nominal Contracting -- Chapter 7. Implicit Contracts -- Chapter 8. Judging Quality by Price -- Chapter 9. Psychological Pricing Points -- Chapter 10. Procyclical Elasticity of Demand

This paper investigates the relationship between firm mark‐ups and inflation. In sectors of the economy with industries characterized by flexible prices and sticky wages, mark‐ups should respond positively to inflation. Industry mark‐ups in sectors with both flexible prices and flexible wages theoretically may rise or fall in response to an increase in the price level. Mark‐ups of industries in sectors of the economy in which prices are sticky should respond negatively to inflation, with an absolutely larger negative response occurring in sticky‐price industries with flexible wages. Empirical analysis of US industries provides support for nearly all of these theoretical predictions.