Firm-specific capital, nominal rigidities, and the business cycle
By: David Altig ... [et al.].
Contributors: Altig, David, 1956-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11034; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11034.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Prices -- United States -- Econometric models.; Business cycles -- United States -- Econometric models.
Description: "Macroeconomic and microeconomic data paint conflicting pictures of price behavior.  Macroeconomic data suggest that inflation is inertial.  Microeconomic data indicate that firms change prices frequently.  We formulate and estimate a model which resolves this apparent micro--macro conflict.  Our model is consistent with post-war U.S.  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"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.