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Replication data for: Optimal Sticky Prices under Rational Inattention

Version
1
Resource Type
Dataset
Creator
  • Mackowiak, Bartosz
  • Wiederholt, Mirko
Publication Date
2009-06-01
Description
  • Abstract

    This paper presents a model in which price setting firms decide what to pay attention to, subject to a constraint on information flow. When idiosyncratic conditions are more variable or more important than aggregate conditions, firms pay more attention to idiosyncratic conditions than to aggregate conditions. When we calibrate the model to match the large average absolute size of price changes observed in micro data, prices react fast and by large amounts to idiosyncratic shocks, but only slowly and by small amounts to nominal shocks. Nominal shocks have strong and persistent real effects. (JEL D21, D83, E31, E52)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.99.3.769 (Text)
Publications
  • Mackowiak, Bartosz, and Mirko Wiederholt. “Optimal Sticky Prices under Rational Inattention.” American Economic Review 99, no. 3 (May 2009): 769–803. https://doi.org/10.1257/aer.99.3.769.
    • ID: 10.1257/aer.99.3.769 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Mackowiak, Bartosz; Wiederholt, Mirko (2009): Replication data for: Optimal Sticky Prices under Rational Inattention. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E113305V1