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Madeira, J. (2015). Firm-specific capital, inflation persistence and the sources of business cycles. European Economic Review. 74, 229-243
J. A. Madeira, "Firm-specific capital, inflation persistence and the sources of business cycles", in European Economic Review, vol. 74, pp. 229-243, 2015
@article{madeira2015_1732208754954, author = "Madeira, J.", title = "Firm-specific capital, inflation persistence and the sources of business cycles", journal = "European Economic Review", year = "2015", volume = "74", number = "", doi = "10.1016/j.euroecorev.2014.12.004", pages = "229-243", url = "https://www.sciencedirect.com/journal/european-economic-review" }
TY - JOUR TI - Firm-specific capital, inflation persistence and the sources of business cycles T2 - European Economic Review VL - 74 AU - Madeira, J. PY - 2015 SP - 229-243 SN - 0014-2921 DO - 10.1016/j.euroecorev.2014.12.004 UR - https://www.sciencedirect.com/journal/european-economic-review AB - This paper estimates a firm-specific capital DSGE model. Firm-specific capital improves the fit of DSGE models to the data (as shown by a large increase in the value of the log marginal likelihood). This results from a lower implied estimate of the NKPC slope for a given degree of price stickiness. Firm-specific capital leads to a better fit to the volatilities of macro variables and a greater persistence of inflation. It is also shown that firm-specific capital reduces the dependence of New Keynesian models on price markup shocks and that it increases the persistence of output to monetary shocks. ER -