کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
983531 934024 2013 12 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Money illusion and the long-run Phillips curve in staggered wage-setting models
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Money illusion and the long-run Phillips curve in staggered wage-setting models
چکیده انگلیسی

We consider the effect of money illusion – defined referring to Stevens' ratio estimation function – on the long-run Phillips curve in an otherwise standard New Keynesian model of sticky wages. We show that if households under-perceive real economic variables, negative money non-superneutralities will become more severe. On the contrary, if households over-perceive real variables, positive money non-superneutralities will arise. We also provide a welfare analysis of our results and we show that they are robust to the inclusion of varying capital into the model. Firms' (over-)under-perception of the real prices of production inputs (strengthens) weakens negative money non-superneutralities. In the Appendix, we investigate how money illusion affects the short-run effects of a monetary shock.


► Money illusion is defined referring to Stevens' ratio estimation function.
► We focus on the long-run Phillips curve in a New Keynesian model of sticky wages.
► Under-perception of real variables strengthens money non-superneutralities.
► Over-perception of real variables produces positive money non-superneutralities.
► Welfare and short-run analyses are also provided.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Research in Economics - Volume 67, Issue 1, March 2013, Pages 88–99
نویسندگان
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