How well does sticky information explain the dynamics of inflation, output, and real wages?

Firm entry, markups and the monetary transmission mechanism

“…Along the lines of Dupor et al (2010), Carrillo (2012) proposes the Root Mean Squared Error (RMSE) between the theoretical and empirical impulse responses as a measure of model accuracy. Similarly This exercise computes the weak identification regions as in Canova and Sala (2009) for the three utility parameters: love of variety n, risk aversion s C and habit formation b.…”

Endogenous Wage Indexation and Aggregate Shocks

“…Cogley et al (2010) estimate a New Keynesian model with sticky prices and flexible wages through Bayesian methods over two sample periods: 1960:Q1-1979:Q3 and 1982:Q4-2006:Q4. We take the estimated σ π for the first subperiod for our Great Inflation calibration, while the value for the second subperiod appears in the Great Moderation calibration.22 SeeBoivin and Giannoni (2006),Smets and Wouters (2007), orCarrillo (2012).…”