Kiel Policy Brief No. 11

In this paper we empirically investigate the time- and state-dependent behavior of aggregate price setting. We implement a testing procedure...

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers’...

This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of firing costs in a partial...

In this paper we incorporate the two most prominent approaches of inequality aversion, i.e. Fehr and Schmidt (1999) and Bolton and Ockenfels...

This paper estimates a high-frequency New Keynesian Phillips curve via the Generalized Method of Moments. Allowing for higher-thanusual...

This paper studies the role of labor market institutions in business cycle fluctuations. We develop a DSGE model with search and matching...

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers’...

We incorporate inequality aversion into an otherwise standard New Keynesian dynamic stochastic equilibrium model with Calvo wage contracts and...

We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive...

This paper estimates a high-frequency New Keynesian Phillips curve via the Generalized Method of Moments. Allowing for higher-than-usual...

We present a theory of nominal wage adjustment based on worker loss aversion, along the lines of prospect theory. Wage changes are evaluated...