Munich Personal RePEc Archive

The Dual Stickiness Model and Inflation Dynamics in Spain

Torres Torres, Diego José (2009): The Dual Stickiness Model and Inflation Dynamics in Spain.

[img]
Preview
PDF
MPRA_paper_18031.pdf

Download (416Kb) | Preview

Abstract

We estimate a model that integrates sticky prices and sticky information using Spanish data following Dupor et. al (2008). The model yields three empircal facts: a-) the frequency of price changes (around one year), b-) the firm's report that sticky information is no too important for nominal rigidities and c-) the inflation's persistence, the latter with more microfoundations than the Hybrid Model. We found that both types of stickiness are present in Spain, but the most important is the stickiness in prices.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.