RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness
Equation
y
t
(
k
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=
c
t
d
(
k
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+
∫
0
1
m
i
,
t
d
(
k
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d
k
=
1
γ
j
(
P
t
(
k
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P
j
,
t
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−
ε
c
j
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t
s
+
∫
0
1
1
γ
j
(
P
t
(
k
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P
j
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−
ε
m
i
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t
j
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d
d
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=
(
P
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ε
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−
ε
∫
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1
m
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t
d
d
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y
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=
∫
ψ
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−
1
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