Data and Code for: Dynamic Oligopoly and Price Stickiness
Principal Investigator(s): View help for Principal Investigator(s) Olivier Wang, New York University; Iván Werning, Massachusetts Institute of Technology
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| mathematica | 05/16/2022 03:50:PM | ||
| matlab | 03/28/2022 06:22:PM | ||
|
|
application/pdf | 49 KB | 05/16/2022 12:02:PM |
Project Citation:
Wang, Olivier, and Werning, Iván. Data and Code for: Dynamic Oligopoly and Price Stickiness. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-07-19. https://doi.org/10.3886/E166161V1
Project Description
Summary:
View help for Summary
Codes for "Dynamic Oligopoly and Price Stickiness" in Mathematica and MATLAB.
Abstract: How does market concentration affect the potency of monetary policy? To tackle this question we build a model with oligopolistic sectors. We provide a formula for the response of aggregate output to monetary shocks in terms of sufficient statistics: demand elas- ticities, concentration, and markups. We calibrate our model to the evidence on pass-through, and find that higher concentration significantly amplifies non-neutrality. To isolate the strategic effects of oligopoly, we compare our model to one with monopolistic competition recalibrated to ensure firms face comparable demand functions. Finally, we compute an exact Phillips curve for our model. Qualitatively, our Phillips curve incorporates extra terms relative to the standard New Keynesian one. However, quantitatively, we show that a standard Phillips curve, appropriately recalibrated, provides an excellent approximation.
Scope of Project
Subject Terms:
View help for Subject Terms
monetary policy;
market power;
pass-through;
dynamic oligopoly
JEL Classification:
View help for JEL Classification
D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
E31 Price Level; Inflation; Deflation
E52 Monetary Policy
D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
E31 Price Level; Inflation; Deflation
E52 Monetary Policy
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.