Time-varying (S, s) band models: Properties and interpretation
A recent strand of empirical work uses (S, s) models with time-varying stochastic bands to describe infrequent adjustments of prices and other variables. The present paper examines some properties of this model, which encompasses most micro-founded adjustment rules rationalizing infrequent changes....
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Elsevier
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/56127 |