Welfare implications of Calvo vs. Rotemberg-pricing assumptions

C-Tier
Journal: Economics Letters
Year: 2008
Volume: 100
Issue: 2
Pages: 275-279

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper compares the welfare implications of two widely used pricing assumptions in the New-Keynesian literature: Calvo-pricing vs. Rotemberg-pricing. We show that despite the strong similarities between the two assumptions to a first order of approximation, in general they might entail different welfare costs at higher order of approximation.

Technical Details

RePEc Handle
repec:eee:ecolet:v:100:y:2008:i:2:p:275-279
Journal Field
General
Author Count
2
Added to Database
2026-01-25