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

PSC In The News

RSS Feed icon

Stern, Novak, Harlow, and colleagues say compensation due Californians forcibly sterilized under eugenics laws

Burgard and Seelye find job insecurity linked to psychological distress among workers in later years

Former PSC trainee Jay Borchert parlays past incarceration and doctoral degree into pursuing better treatment of inmates

More News

Highlights

Savolainen wins Outstanding Contribution Award for study of how employment affects recidivism among past criminal offenders

Giving Blueday at ISR focuses on investing in the next generation of social scientists

Pfeffer and Schoeni cover the economic and social dimensions of wealth inequality in this special issue

PRB Policy Communication Training Program for PhD students in demography, reproductive health, population health

More Highlights

Next Brown Bag

Mon, Jan 23, 2017 at noon:
H. Luke Shaefer

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