Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/8585
Title: Heterogeneity in sectoral price and quantity responses to shocks to monetary policy
Authors: Özmen, Mustafa Utku
Tuğan M.
Keywords: Differences in sectoral labor shares
Sectoral frequency of price changes
Sectoral heterogeneity in front-loading
Shocks to monetary policy
Issue Date: 2022
Publisher: Elsevier Ltd
Source: Özmen, M. U., & Tuğan, M. (2022). Heterogeneity in sectoral price and quantity responses to shocks to monetary policy. Journal of Macroeconomics, 103439.
Abstract: This paper investigates the sectoral price and quantity responses to an exogenous interest rate shock in the United States. It has two main findings. First, an interest rate shock causes strong relative price effects in a non-negligible number of sectors whose price responses to the shock differ broadly from those of the aggregate. More importantly, such effects are present even four years after the shock. Second, sectoral differences in the frequency of price changes are only weakly associated with the sectoral price and quantity responses. We show that a multi-sector model equipped with a working-capital channel, sticky wages, and sectoral heterogeneity in the frequency of price changes and the structure of production costs can explain these two findings. © 2022 Elsevier Inc.
URI: https://doi.org/10.1016/j.jmacro.2022.103439
https://hdl.handle.net/20.500.11851/8585
ISSN: 0164-0704
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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