Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Prescott says sex offender registries may increase recidivism by making offender re-assimilation impossible

Frey says rising numbers of younger minority voters mean Republicans must focus on fiscal not social issues

Work by Garces and Mickey-Pabello cited in NYT piece on lack of black physicians

Highlights

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Elizabeth Bruch wins ASA award for paper in mathematical sociology

Spring 2015 PSC newletter available now

Formal demography workshop and conference at UC Berkeley, August 17-21

Next Brown Bag

PSC Brown Bags will be back fall 2015


Sticky-price models and durable goods

Publication Abstract

Barsky, R.B., C.L. House, and Miles Kimball. 2007. "Sticky-price models and durable goods." American Economic Review, 97(3): 984-998.

The inclusion of a durable goods sector in sticky-price models has strong and unexpected implications. Even if most prices are flexible, a small durable goods sector with sticky prices may be sufficient to make aggregate output react to monetary policy as though most prices were sticky. In contrast, flexibly priced durables with sufficiently long service lives can undo the implications of standard sticky price models. In a limiting case, flexibly priced durables cause monetary policy to have no effect on aggregate output. Our analysis suggests that durable goods prices are the most relevant data for calibrating price rigidity.

DOI:10.1257/000282807781267156 (Full Text)

Browse | Search : All Pubs | Next