{"title":"Sectoral Price Rigidity and Aggregate Dynamics","authors":"Hafedh Bouakez, Emanuela Cardia, F. Ruge-Murcia","doi":"10.2139/ssrn.1548020","DOIUrl":null,"url":null,"abstract":"This paper studies the business cycle implications of sectoral heterogeneity in price rigidity using a highly disaggregated multi-sector model. The model is estimated by the Simulated Method of Moments using a mix of aggregate and sectoral U.S. data. The frequencies of price changes implied by our estimates are consistent with those reported in micro-based studies. We show that heterogeneity in price rigidity is the primary factor explaining the heterogeneity in the responses of sectoral output and inflation to a monetary policy shock. We also find that ignoring sectoral heterogeneity in price rigidity leads to the mismeasurement of the relative importance of aggregate and sector-specific shocks in aggregate and sectoral fluctuations.","PeriodicalId":123778,"journal":{"name":"ERN: Theoretical Dynamic Models (Topic)","volume":"3 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2009-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"77","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: Theoretical Dynamic Models (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.1548020","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 77
Abstract
This paper studies the business cycle implications of sectoral heterogeneity in price rigidity using a highly disaggregated multi-sector model. The model is estimated by the Simulated Method of Moments using a mix of aggregate and sectoral U.S. data. The frequencies of price changes implied by our estimates are consistent with those reported in micro-based studies. We show that heterogeneity in price rigidity is the primary factor explaining the heterogeneity in the responses of sectoral output and inflation to a monetary policy shock. We also find that ignoring sectoral heterogeneity in price rigidity leads to the mismeasurement of the relative importance of aggregate and sector-specific shocks in aggregate and sectoral fluctuations.
本文使用高度分解的多部门模型研究了价格刚性中部门异质性的商业周期影响。该模型是通过模拟矩法(simulation Method of Moments)估算的,使用的是美国的综合和部门数据。我们的估计所隐含的价格变化频率与基于微观的研究报告一致。我们表明,价格刚性的异质性是解释部门产出和通货膨胀对货币政策冲击反应的异质性的主要因素。我们还发现,忽视价格刚性的部门异质性会导致对总体和部门波动中总体和部门特定冲击的相对重要性的错误衡量。