Strategic complementarities as stochastic control under sticky price
Fuente:
arXiv
Guardado en:
| Autor principal: | |
|---|---|
| Formato: | Preprint |
| Publicado: |
2024
|
| Materias: | |
| Acceso en línea: | |
| Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
| _version_ | 1866911818860986368 |
|---|---|
| author | Dong, Lambert |
| author_facet | Dong, Lambert |
| contents | We examine how monetary shocks spread throughout an economic model characterized by sticky prices and general equilibrium, where the pricing strategies of firms are interlinked, fostering a mutually beneficial relationship. In this dynamic equilibrium, pricing choices of firms are influenced by overall economic factors, which are themselves affected by these decisions. We approach this situation using a path integral control method, yielding several important insights. We confirm the presence and uniqueness of the equilibrium and scrutinize the impulse response function (IRF) of output subsequent to a shock affecting the entire economy. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2403_19847 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Strategic complementarities as stochastic control under sticky price Dong, Lambert Theoretical Economics Optimization and Control We examine how monetary shocks spread throughout an economic model characterized by sticky prices and general equilibrium, where the pricing strategies of firms are interlinked, fostering a mutually beneficial relationship. In this dynamic equilibrium, pricing choices of firms are influenced by overall economic factors, which are themselves affected by these decisions. We approach this situation using a path integral control method, yielding several important insights. We confirm the presence and uniqueness of the equilibrium and scrutinize the impulse response function (IRF) of output subsequent to a shock affecting the entire economy. |
| title | Strategic complementarities as stochastic control under sticky price |
| topic | Theoretical Economics Optimization and Control |
| url | https://arxiv.org/abs/2403.19847 |