Volume 6, Issue 19 (3-2015)                   jemr 2015, 6(19): 41-72 | Back to browse issues page


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1- Shiraz University , asamadi@rose.shirazu.ac.ir
2- Shiraz University
Abstract:   (5476 Views)

Hybrid sticky price model is one of  the main models, used to analyze the Persistencyand inertia in inflation. In recent years, Mankiw and Reis (2002),s sticky information model, has also been considered by many economic analysts. So, in present paper, we try to investigate and compare these models by using a Dynamic Stochastic General Equilibrium (DSGE) framework, based on new Keynesian structure. For this purpose, the data 1370:1-1391:4 Iran's economy has been used. The results of the estimated coefficient of inflation inertia indicate, inflation inertia in the model of hybrid price stickiness is more than information stickiness model. Inflation Persistency analysis is based on comparing the autocorrelation function of the original data and simulated data, show that hybrid price stickiness is better thaninformation stickiness model shows inflation persistence.It seems to be a hybrid price stickiness model more consistent with the economy of Iran and economic policy makers can be more confident of the results of this model to use them.

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Type of Study: Applicable | Subject: پولی و مالی
Received: 2014/04/7 | Accepted: 2015/01/12 | Published: 2015/06/15

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