Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062696 | Economics Letters | 2006 | 5 Pages |
Abstract
We draw on the literature on dynamic factor demand equations to provide evidence for the calibration of capital adjustment costs in the New-Keynesian model. The findings support previous work which shows that for a wide range of values of the capital adjustment cost parameter, the New-Keynesian model gives plausible estimates of the degree of price stickiness.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Charlotta Groth,