RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness
Equation
ω
j
,
t
=
1
α
j
α
j
(
1
−
α
j
)
1
−
α
j
1
(
z
j
,
t
)
α
j
w
˜
t
α
j
r
j
,
t
l
j
,
t
d
=
α
j
ω
j
,
t
w
˜
t
y
˜
j
,
t
j
=
1
,
...
,
N
y
˜
j
,
t
=
γ
j
(
r
j
,
t
+
)
−
ε
y
˜
t
j
=
1
,
...
,
N
m
˜
j
,
t
d
=
(
1
−
α
j
)
ω
j
,
t
r
j
,
t
y
˜
j
,
t
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqaHjp WDdaWgaaWcbaGaamOAaiaacYcacaWG0baabeaakiabg2da9maalaaa baGaaGymaaqaaiabeg7aHnaaDaaaleaacaWGQbaabaGaeqySde2aaS baaWqaaiaadQgaaeqaaaaakmaabmaabaGaaGymaGGaaiab=jHiTiab eg7aHnaaBaaaleaacaWGQbaabeaaaOGaayjkaiaawMcaamaaCaaale qabaGaaGymaiab=jHiTiabeg7aHnaaBaaameaacaWGQbaabeaaaaaa aOWaaSaaaeaacaaIXaaabaWaaeWaaeaacaWG6bWaaSbaaSqaaiaadQ gacaGGSaGaamiDaaqabaaakiaawIcacaGLPaaadaahaaWcbeqaaiab eg7aHnaaBaaameaacaWGQbaabeaaaaaaaOWaaSaaaeaaceWG3bGbaG aadaqhaaWcbaGaamiDaaqaaiabeg7aHnaaBaaameaacaWGQbaabeaa aaaakeaacaWGYbWaaSbaaSqaaiaadQgacaGGSaGaamiDaaqabaaaaa GcbaqbaeqabiGaaaqaaiaadYgadaqhaaWcbaGaamOAaiaacYcacaWG 0baabaGaamizaaaakiabg2da9maalaaabaGaeqySde2aaSbaaSqaai aadQgaaeqaaOGaeqyYdC3aaSbaaSqaaiaadQgacaGGSaGaamiDaaqa baaakeaaceWG3bGbaGaadaWgaaWcbaGaamiDaaqabaaaaOGabmyEay aaiaWaaSbaaSqaaiaadQgacaGGSaGaamiDaaqabaaakeaacaWGQbGa eyypa0JaaGymaiaacYcacaGGUaGaaiOlaiaac6cacaGGSaGaamOtaa qaaiqadMhagaacamaaBaaaleaacaWGQbGaaiilaiaadshaaeqaaOGa eq4SdC2aaSbaaSqaaiaadQgaaeqaaOWaaeWaaeaacaWGYbWaa0baaS qaaiaadQgacaGGSaGaamiDaaqaaiabgUcaRaaaaOGaayjkaiaawMca amaaCaaaleqabaGae8NeI0IaeqyTdugaaOGabmyEayaaiaWaaSbaaS qaaiaadshaaeqaaaGcbaGaamOAaiabg2da9iaaigdacaGGSaGaaiOl aiaac6cacaGGUaGaaiilaiaad6eaaaaabaqbaeqabeqaaaqaaiqad2 gagaacamaaDaaaleaacaWGQbGaaiilaiaadshaaeaacaWGKbaaaaaa kiabg2da9maabmaabaGaaGymaiab=jHiTiabeg7aHnaaBaaaleaaca WGQbaabeaaaOGaayjkaiaawMcaaiabeM8a3naaBaaaleaacaWGQbGa aiilaiaadshaaeqaaOGaamOCamaaBaaaleaacaWGQbGaaiilaiaads haaeqaaOGabmyEayaaiaWaaSbaaSqaaiaadQgacaGGSaGaamiDaaqa baGccaGGUaaaaaa@AA05@