摘要：Using Bayesian likelihood methods, this paper estimates a dynamic stochastic
general equilibrium model with Taylor contracts and firm-specific factors in the
goods market on euro-area data. The paper shows how the introduction of
firmspecific factors improves the empirical fit of the model and reduces the
estimated contract length to a duration of four quarters, which is more
consistent with the empirical evidence on average price durations in the euro
area. However, in order to obtain this result, the estimated real rigidity is
very large, either in the form of a very large constant elasticity of
substitution between goods or in the form of an endogenous elasticity of
substitution that is very sensitive to the relative price. Finally, the paper
also investigates the implications of these estimates for the distribution of
prices and quantities across the various goods sectors.
