Endogenous Price Stickiness and Business Cycle Persistence
构建了一个融合不完全信息与价格粘性的模型，发现高通胀会降低价格粘性，从而减弱产出波动的持续性，实证结果支持价格粘性而非资本积累等机制是经济周期持续性的主要解释。
This paper presents a model with imperfect information and price stickiness.In the model, both imperfect information and nominal price rigidity allow nominal shocks to act as business cycle impulses, but only sticky prices propagate the real effects of nominal shocks over time.The model indicates that high rates of inflation lead to less nominal price rigidity, and hence less persistent fluctuations of output about trend.Estimation of the model, as well as simple autocorrelations of detrended real output, indicate that indeed output fluctuations about trend are less persistent in high inflation economies.These results lend little support to equilibrium business cycle models in which the persistence of output fluctuations is explained through persistent real shocks, capital accumulation, or capital and labor adjustment costs