In this paper, we ask whether a small structural model with sticky prices and wages, embedding various modelling devices designed to increase the degree of strategic complementarity between price-setters, can fit postwar US data. To answer this question, we resort to a two-step empirical evaluation of our model. In a first step, we estimate the model by minimizing the distance between theoretical autocovariances of key macroeconomic variables and their VAR-based empirical counterparts. In a second step, we resort to Watson's (1993) procedure [Measures of fit for calibrated models. Journal of Political Economy 101 (6), 1011.1041] to quantify the model's goodness-of-fit. Our main result is that the combination of sticky prices and sticky wages is central in order to obtain a good empirical fit. Our analysis also reveals that a model with only sticky wages does not perform well according to Watson's criterion (1993). (This abstract was borrowed from another version of this item.)
Le ratio de sacrifice de la zone euro est simulé dans le cadre d’une maquette structurelle macroéconomique. Le modèle est utilisé pour analyser l’impact d’une modification du degré de rigidité des salaires sur le ratio.
The sacrifice ratio for the euro area is estimated by means of a structural macroeconomic model. This model is used to gauge the impact of wage stickiness on the sacrifice ratio.
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