Implications of State-dependent Pricing for Dynamic Macroeconomic Models

By M. Dotsey, Robert G. King. 2005

259 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/e0934b31fcd70e3626fb4cd047b70cdd41ce1f47

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In Economics and Econometrics

Citations in the corpus

Real Rigidities and Nominal Price Changes (2006, background): “The macro real rigidity does not entail such large idiosyncratic shocks, and is consistent with the volatility of sectoral TFP growth.”
A Structural Approach to Identifying the Sources of Local Currency Price Stability (2007, unknown): “In this case   is determined according to equation (15) which reflects the manufacturer’s first-order condition; the inverted manufacturer reaction matrix Ω−1  in this equation incorporates the optimal pass-through of the wholesale price change onto the retail price.”
DECLINING EXCHANGE RATE PASS-THROUGH TO U.S. IMPORT PRICES: THE POTENTIAL ROLE OF GLOBAL FACTORS (2007, background): “More recently, Gust, Leduc, and Vigfusson (2006), drawing on the work of Kimball (1995) and Dotsey and King (2005), show within the context of a DSGE model that in the presence of strategic complementarities--that is, if a firm’s optimal price response depends positively on the price set by its comp”
Identifying the Influences of Nominal and Real Rigidities in Aggregate Price-Setting Behavior (2007, unknown): “dependent price-setting, while Klenow and Kryvstov (2004) provide recent evidence on its limited role in generating aggregate inflation variability; see also recent work by Dotsey and King (2004) .”
Information-Constrained State-Dependent Pricing (2008, background): “period t only when that period is reached, it must solve this design problem — which allows it to choose how much memory to access in period t in making its price-review decision — without making use of any memory.(16) The firm’s objective when choosing this strategy has three terms: the expected va”
Endogenous Information, Menu Costs and Inflation Persistence (2008, unknown): “Dotsey and King (2005) achieve a small, cotemporaneous increase and hump shape in the inflation response to a nominal shock by introducing very strong real rigidity (smoothed kinked demand as in Kimball (1995)).”
The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data (2010, background): “Third, the asymmetry in the response to price changes can also simply come from preferences, as assumed by Kimball (1995) and Dotsey and King (2005). All these models share the”
Price Stickiness in Ss Models: New Interpretations of Old Results (2007, methodology): “On this account, the recent work by, e.g., Carvalho (2007), Gorodichenko (2006), Nakamura and Steinsson (2006b), Dotsey and King (2005) and Kleshchelski and Vincent (2007) seem particularly promising.”
Heterogeneity in Consumer Price Stickiness (2005, background): “For instance, Dotsey and King (2005) found that output persistence is lower in a state-dependent model than in a time-dependent model, other things being equal.”
Market structure and exchange rate pass-through (2012, methodology): “We use country-specific US import data at the HS 10-digit level of disaggregation from Feenstra et al. (2002), who update the data of Feenstra (1996).”
The Power of Forward Guidance Revisited (2016, unknown): “where following Dotsey and King (2005) we adopt the function form”
Trade Integration, Competition, and the Decline in Exchange-Rate Pass-Through (2006, unknown): “on the work of Kimball (1995) and more recently, Dotsey and King (2005). These papers allow for complementarity in price setting using demand curves for which (the absolute value) of the demand elasticity is increasing in a firm’s price relative to the price of its competitors.”