tailieunhanh - Handbook of Empirical Economics and Finance _9

Tham khảo tài liệu 'handbook of empirical economics and finance _9', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Structural Macroeconometric Modeling in a Policy Environment 229 A continuum of micro-units over 0 1 is generally used in place of a finite number as above and in such a case Yt would be represented as Yt rr 1 A-Ị 1 - Yit di Profit maximization by the sectoral producers means that the amount of the sectoral output produced would depend on Yt and the relative price P with the functional form being Yit Yt P . As well the aggregate price level relates to the sectoral ones as P x I1 Pit Ý-Kdi. Models are then built for Pit and Yit and aggregated with these functions. The method is well known from Dixit and Stiglitz 1977 . Because of the use of CES functions any underlying heterogeneity has an impact only through the presence of parameters that describe the nature of the heterogeneity . the distribution of the micro decisions say on Pit . Basing the model design on a microeconomic structure can potentially expand the range of information available for parameter estimation through the use of studies of microeconomic decision making. 2. In the case of firms following different pricing strategies the aggregation scheme just described forms the basis of the Calvo pricing model. In this some firms can optimally reset their prices each period and others need to follow a simple rule of thumb. Consequently the heterogeneity in decisions about Pit can be summarized by a single parameter the fraction of firms Ệ who are able to optimally adjust their price at each point in time. The aggregate Phillips curve can then be shown to have the form _ 1 I 1 - 0 1 - Pẽ z T7TT t - TT ĩ p t-1 ------- 1 p --- rmct - rmc 1 p Et t 1 Zu where rmct is real marginal cost or unit labor costs with a Cobb-Douglas production function and TT is a target rate of inflation. An appealing argument for building the curve up from a micro-unit level was that it allowed for monopolistic and monopsonistic behavior at that level rather than the competitive markets of the 3G models. Thus .

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