Pitfalls In The Modeling Of Forward-Looking Price Setting And Investment Decisions

Topics:
Organization
Tags:
Business Operations,
Currency & Foreign Exchange,
Finance,
Inflation,
Investment Decision,
Modeling,
Norges Bank,
Price,
Research & Development
Source:
Norges Bank

FREE Registration is required

Overview: The author discusses some difficulties in a dynamic New-Keynesian model with staggered price setting a la Calvo and a convex capital adjustment cost at the firm level, as considered by Woodford. It is shown that the implied simultaneous price setting and investment decision has not been analyzed properly. Our work fills that gap by proposing a tractable solution to the key problem of describing the inflation dynamics associated with that structure.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 371KB | Date: Feb 2004 | Pages: 30

People who downloaded this item also downloaded

White Paper A Framework for Comprehensive Strategic Analysis
White Paper Lessons Learned From Benchmarking Marketing ROI
Presentation Strategic Planning
White Paper Financial Planning

Top results from Organization

White Paper Organizational Goal Alignment in Ten Easy Steps
Tools & Templates Use this action item log to keep project team meetings on task
Tools & Templates Clarify project roles with this simple responsibility matrix
Download Crash Course: Microsoft Word
Presentation Microsoft Office Professional Plus 2007 Demo

» View all Organization listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).