Discussion Papers, Policy Papers, Books & Reports, Bulletin, Newsletter, Economic Policy Lunchtime Meetings, Workshops & Conferences, Events Diary, Previous Events Programme Areas, Current Research Projects, Networks, Vacancies Programme Directors, Researchers Lists, Noticeboard Press Releases, Coverage, Request a Press Release Data?, Resources for Economists, Data on Other sites Membership information Login, Create a Profile, Profile Benefits, Your Profile Settings, Forgot Your Password? Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback How to find us, Frequently Asked Questions, ESRC Site Guide, Frequently Asked Questions, Vacancies, How to Search Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback CEPR Home Page You have items in your shopping cart. Click to view your cart
Google


DP4858 Firm-Specific Capital, Nominal Rigidities and the Business Cycle

Author(s): David E Altig , Lawrence J. Christiano , Martin Eichenbaum , Jesper Lindé
Publication Date: January 2005
Keyword(s):
JEL(s): E30 , E40 , E50
Programme Areas: International Macroeconomics
Link to this Page: www.cepr.org/pubs/dps/DP4858.asp


Macroeconomic and microeconomic data paint conflicting pictures of price behaviour. Macroeconomic data suggest that inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model that resolves this apparent micro/macro conflict. Our model is consistent with post-war US evidence on inflation inertia even though firms re-optimize prices on average once every 1.5 quarters. The key feature of our model is that capital is firm-specific and pre-determined within a period.

Full text Search:
Enter a DP Number:

Access other features of the site by loging in with your personal profile. Purchase a copy of the paper in PDF format. Purchase a printed copy of the paper. How to subscribe to the CEPR Discussion Paper series Send an email to a colleague with details of the paper. Obtain Plain Text details of this paper which you can copy in to a word document or email allowing you to easily cite this paper! Help in purchasing and downloading papers. CEPR RSS feeds information page.

Your current location: Publications > Discussion Papers
Top CEPR, 53-56 Great Sutton Street, London EC1V 0DG
United Kingdom.
Tel: +44 (0)20 7183 8801     Fax: +44 (0)20 7183 8820
Email: cepr@cepr.org     Webmaster: webmaster@cepr.org 		Home
With the support of the European Union: Support for bodies active at European level in the field of active European citizenship