期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2002
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：In this paper we develop an open economy model of firms’ pricing behaviour
under imperfect competition. This allows us to introduce various
terms of trade effects influencing the firm’s pricing decision, in addition
to labour costs which dominate most closed-economy specifications of the
New Keynesian Phillips (NKPC) curve. Our analysis gives rise to a hybrid
open economy NKPC which nests existing closed and open economy
specifications adopted in empirical work. We estimate this specification
for the G7 economies and find that the US, UK and Canada typically
enjoy less inertia in price setting than the European G7 economies and
Japan and that these estimates are both plausible and in line with survey
evidence. We also find that the proportion of firms which use simple
backward-looking rules of thumb in price setting is greater when the frequency
of price change is smaller. Finally there is evidence of significant
asymmetries in price setting amongst EMU members.
