Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Persistence and nominal inertia in a Generalized Taylor Economy: how longer contracts dominate shorter contracts

Dixon, Huw and Kara, Engin 2007. Persistence and nominal inertia in a Generalized Taylor Economy: how longer contracts dominate shorter contracts. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

[img]
Preview
PDF - Published Version
Download (417kB) | Preview

Abstract

We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of different lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of contract lengths, we find that the corresponding GTE tracks the US data well. When we choose a GTE with the same distribution of completed contract lengths as the Calvo, the economies behave in a similar manner.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 04 Jun 2017 08:25
URI: http://orca.cf.ac.uk/id/eprint/77742

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics