کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5066659 | 1476794 | 2015 | 15 صفحه PDF | دانلود رایگان |
- Firm-specific capital improves the fit of DSGE models to the data.
- Firm-specific capital leads to greater persistence of inflation.
- Firm-specific capital reduces the dependence on price markup shocks.
- Firm-specific capital increases the persistence of output to monetary shocks.
This paper estimates a firm-specific capital DSGE model. Firm-specific capital improves the fit of DSGE models to the data (as shown by a large increase in the value of the log marginal likelihood). This results from a lower implied estimate of the NKPC slope for a given degree of price stickiness. Firm-specific capital leads to a better fit to the volatilities of macro variables and a greater persistence of inflation. It is also shown that firm-specific capital reduces the dependence of New Keynesian models on price markup shocks and that it increases the persistence of output to monetary shocks.
Journal: European Economic Review - Volume 74, February 2015, Pages 229-243