Published September 29, 2014 | Version stickyprices
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MacroIIDiscrete stickyprices

  • 1. George Mason University

Description

This is my second paper from this project. It is a simple two sectors supply-chain trying to coordinate itself. To make a long story short, the upstream firm needs to change its prices much more slowly than it would if it was facing final demand. This is mostly because firms downstream need time to react to price changes and no amount of discount or price hike will make them go any faster.

I attach the replication guide to create the plots of the paper and the knitR document with the R code that made the drawings.

This is actually the second version of my paper. I cut a lot from the earlier one including the whole inventories business. It just wasn't needed. There might be more modifications after the referees read it but overall it's pretty good and gradle makes it easy to replicate

Files

MacroIIDiscrete-stickyprices.zip

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