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RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness
Equation
c
˜
j
=
c
t
z
t
w
˜
t
=
W
t
z
t
P
t
y
˜
j
,
t
=
y
j
,
t
z
t
y
˜
t
=
y
t
z
t
h
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t
=
H
t
z
t
P
t
m
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j
,
t
d
=
m
j
,
t
d
z
t
m
˜
t
d
=
m
t
d
z
t
Λ
˜
t
=
β
−
t
z
t
P
t
Λ
t
r
j
,
t
=
P
j
,
t
P
t
r
j
,
t
+
=
P
j
,
t
+
P
t
Π
t
=
P
t
P
t
−
1
Π
j
,
t
=
P
j
,
t
P
j
,
t
−
1
ω
j
,
t
=
Ω
j
,
t
P
j
,
t
.
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