Skip navigation
User training | Reference and search service

Library catalog

Content aggregators
Please use this identifier to cite or link to this item:

Title: Transitional dynamics in sticky-information general equilibrium models
Authors: Gomes, O.
Keywords: Sticky-information
Perfect foresight
Transitional dynamics
Issue Date: 2012
Publisher: Springer Verlag
Abstract: We address the stability properties of a benchmark general equilibrium model involving pervasive stickiness on information updating. Dynamic behavior is determined essentially by two types of entities: on one hand, the degree of information stickiness that characterizes the price-setting decisions of firms and the consumption and labor supply decisions of households and, on the other hand, a policy parameter that indicates how the central bank acts in order to stabilize prices. Under perfect foresight, stability will hold and the degree of information stickiness simply indicates the velocity of convergence towards the steady-state. If the ability to forecast future events is less than perfect, stability will then depend on monetary policy-the main result is that the stickier the diffusion of information is, the more aggressive monetary policy must be in order to guarantee convergence towards the long-term steady-state.
Description: WOS:000301592200003 (Nº de Acesso Web of Science)
Peer reviewed: Sim
ISSN: 0927-7099
Publisher version: The definitive version is available at:
Appears in Collections:BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica

Files in This Item:
File Description SizeFormat 
publisher_version_Computational_Economics.pdf275.03 kBAdobe PDFView/Open    Request a copy

FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpace
Formato BibTex MendeleyEndnote Currículo DeGóis 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.