RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness Equation

h ( t ) = Σ i ω i λ i e − λ i t Σ i ω i e − λ i t d h d t = ( Σ i ω i ( − λ i 2 ) e − λ i t ) ( Σ i ω i e − λ i t ) − ( Σ i ω i λ i e − λ i t ) ( Σ i ω i ( − λ i ) e − λ i t ) ( Σ i ω i e − λ i t ) 2 = ( Σ i ω i λ i e − λ i t ) 2 − ( Σ i ω i ( λ i 2 ) e − λ i t ) ( Σ i ω i e − λ i t ) ( Σ i ω i e − λ i t ) 2 . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaaieGaca WFObWaaeWaaeaacaWG0baacaGLOaGaayzkaaGaeyypa0ZaaSaaaeaa cqqHJoWudaWgaaWcbaGaamyAaaqabaGccqaHjpWDdaWgaaWcbaGaam yAaaqabaGccqaH7oaBdaWgaaWcbaGaamyAaaqabaGccaWGLbWaaWba aSqabeaaiiaacqGFsislcqaH7oaBdaWgaaadbaGaamyAaaqabaWcca WG0baaaaGcbaGaeu4Odm1aaSbaaSqaaiaadMgaaeqaaOGaeqyYdC3a aSbaaSqaaiaadMgaaeqaaOGaamyzamaaCaaaleqabaGae4NeI0Iaeq 4UdW2aaSbaaWqaaiaadMgaaeqaaSGaamiDaaaaaaaakeaadaWcaaqa aiaadsgacaWGObaabaGaamizaiaadshaaaGaeyypa0ZaaSaaaeaada qadaqaaiabfo6atnaaBaaaleaacaWGPbaabeaakiabeM8a3naaBaaa leaacaWGPbaabeaakmaabmaabaGae4NeI0Iaeq4UdW2aa0baaSqaai aadMgaaeaacaaIYaaaaaGccaGLOaGaayzkaaGaamyzamaaCaaaleqa baGae4NeI0Iaeq4UdW2aaSbaaWqaaiaadMgaaeqaaSGaamiDaaaaaO GaayjkaiaawMcaamaabmaabaGaeu4Odm1aaSbaaSqaaiaadMgaaeqa aOGaeqyYdC3aaSbaaSqaaiaadMgaaeqaaOGaamyzamaaCaaaleqaba Gae4NeI0Iaeq4UdW2aaSbaaWqaaiaadMgaaeqaaSGaamiDaaaaaOGa ayjkaiaawMcaaiab+jHiTmaabmaabaGaeu4Odm1aaSbaaSqaaiaadM gaaeqaaOGaeqyYdC3aaSbaaSqaaiaadMgaaeqaaOGaeq4UdW2aaSba aSqaaiaadMgaaeqaaOGaamyzamaaCaaaleqabaGae4NeI0Iaeq4UdW 2aaSbaaWqaaiaadMgaaeqaaSGaamiDaaaaaOGaayjkaiaawMcaamaa bmaabaGaeu4Odm1aaSbaaSqaaiaadMgaaeqaaOGaeqyYdC3aaSbaaS qaaiaadMgaaeqaaOWaaeWaaeaacqGFsislcqaH7oaBdaWgaaWcbaGa amyAaaqabaaakiaawIcacaGLPaaacaWGLbWaaWbaaSqabeaacqGFsi slcqaH7oaBdaWgaaadbaGaamyAaaqabaWccaWG0baaaaGccaGLOaGa ayzkaaaabaWaaeWaaeaacqqHJoWudaWgaaWcbaGaamyAaaqabaGccq aHjpWDdaWgaaWcbaGaamyAaaqabaGccaWGLbWaaWbaaSqabeaacqGF sislcqaH7oaBdaWgaaadbaGaamyAaaqabaWccaWG0baaaaGccaGLOa GaayzkaaWaaWbaaSqabeaacaaIYaaaaaaaaOqaaiabg2da9maalaaa baWaaeWaaeaacqqHJoWudaWgaaWcbaGaamyAaaqabaGccqaHjpWDda WgaaWcbaGaamyAaaqabaGccqaH7oaBdaWgaaWcbaGaamyAaaqabaGc caWGLbWaaWbaaSqabeaacqGFsislcqaH7oaBdaWgaaadbaGaamyAaa qabaWccaWG0baaaaGccaGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaa aOGae4NeI0YaaeWaaeaacqqHJoWudaWgaaWcbaGaamyAaaqabaGccq aHjpWDdaWgaaWcbaGaamyAaaqabaGcdaqadaqaaiabeU7aSnaaDaaa leaacaWGPbaabaGaaGOmaaaaaOGaayjkaiaawMcaaiaadwgadaahaa Wcbeqaaiab+jHiTiabeU7aSnaaBaaameaacaWGPbaabeaaliaadsha aaaakiaawIcacaGLPaaadaqadaqaaiabfo6atnaaBaaaleaacaWGPb aabeaakiabeM8a3naaBaaaleaacaWGPbaabeaakiaadwgadaahaaWc beqaaiab+jHiTiabeU7aSnaaBaaameaacaWGPbaabeaaliaadshaaa aakiaawIcacaGLPaaaaeaadaqadaqaaiabfo6atnaaBaaaleaacaWG PbaabeaakiabeM8a3naaBaaaleaacaWGPbaabeaakiaadwgadaahaa Wcbeqaaiab+jHiTiabeU7aSnaaBaaameaacaWGPbaabeaaliaadsha aaaakiaawIcacaGLPaaadaahaaWcbeqaaiaaikdaaaaaaOGaaiOlaa aaaa@EA83@