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We study the role of markup dispersion and aggregate TFP for monetary transmission. Empirically, we show that the response of markup dispersion to monetary policy shocks can account for a significant fraction of the aggregate TFP response in the first two years after the shock. Analytically, we show that heterogeneous price rigidity can explain the response of markup dispersion if firms have a precautionary price setting motive, which is present in common New Keynesian environments. We provide empirical evidence in support of this explanation. Finally, we study the mechanism and its implications in a quantitative model.

We document three new empirical facts: (i) monetary policy shocks increase the markup dispersion across firms, (ii) they increase the relative markup of firms with stickier prices, and (iii) firms with stickier prices have higher markups. This is consistent with a New Keynesian model in which price rigidity is heterogeneous across firms.In the model, firms with more rigid prices optimally set higher markups and their markups increase by more after monetary policy shocks. The consequent increase in markup dispersion explains a negative aggregate TFP response. In a calibrated model, monetary policy shocks generate substantial fluctuations in aggregate productivity.

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Scope and structure of National Research Programme 69 "Healthy nutrition and sustainable food production" Fostering healthy and sustainable eating A more sustainable Swiss food system Analysis of the Swiss policies bearing on the food system Conclusive statements and recommendation Glossary Bibliography Annexes 7 6 9 8 Scope and structure of National Research Programme 69 "Healthy nutrition and sustainable food production" 9 8 81 80 Conclusive statements and recommendation 83 82 85 84 Glossary Foodstuffs According to the Swiss Federal Act on Foodstuffs and Utility 29 , foodstuffs are defined as "all substances or products that are intended or may reasonably be expected to be consumed by human beings in a processed, partly processed or unprocessed state". Food system Food system includes all elements and activities that relate to production, transport, processing, packaging, storage, retail, consumption, loss and waste 3/30. Healthy diets Healthy diets are characterised by "an appropriate caloric intake and consist of a diversity of plant-based foods, low amounts of animal source foods, unsaturated rather than saturated fats, and small amounts of refined grains, highly processed foods, and added sugars" 3/30. Public health Public health is defined as the art and science of developing and implementing appropriate responses to the health needs of the population.