کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
957370 928523 2007 9 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Firm-specific capital, nominal rigidities, and the Taylor principle
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Firm-specific capital, nominal rigidities, and the Taylor principle
چکیده انگلیسی

In the presence of firm-specific capital the Taylor principle can generate multiple equilibria. Sveen and Weinke [New perspectives on capital, sticky prices, and the Taylor principle, J. Econ. Theory 123 (2005) 21–39] obtain that result in the context of a Calvo-style sticky price model. One potential criticism is that the price stickiness which is needed for our theoretical result to be relevant from a practical point of view is somewhat to the high part of available empirical estimates. In the present paper we show that if nominal wages are not fully flexible (which is an uncontroversial empirical fact) then the Taylor principle fails already for some minor degree of price stickiness. We use our model to explain the consequences of both nominal rigidities for the desirability of alternative interest rate rules.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Economic Theory - Volume 136, Issue 1, September 2007, Pages 729–737
نویسندگان
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