Results found: 2

Search results

Search:
in the keywords: price rigidity

Sort By:

Limit search:

Degree of monopoly and market power vs. price flexibility in Polish economy: empirical analysis based on COICOP classification

100%

Umiński P.

Oeconomia Copernicana

2020

vol. 11

issue 1

11-28

Research background: The issue of price flexibility is crucial in the economy both in the aspect of company theory and its macroeconomic consequences. In a number of publications, the sources of variable price flexibility are linked to the market power of enterprises as well as the market structure that has developed in a given branch. It is difficult to indicate empirical studies that would state clearly whether price flexibility depends on the degree of monopoly or the market power of enterprises. This paper concerns that particular field of study. Purpose of the article: The purpose of the paper is to present the statistical dependence of the degree of monopoly and market power vs. price flexibility in the economy. Methods: The analysis has been conducted using aggregated data concerning Polish economy in the period from 2001 to 2013, based on COICOP. The degree of monopoly indicator was the average number of companies in a given branch, following the classical models of market structures; the market power indicator was the average net revenue from sales of products per enterprise representing a given branch; the measure of price flexibility was the probability of price variation estimated using the Calvo pricing model. It is, therefore, a frequency-based approach to price flexibility. Statistical dependence was analyzed using the Spearman's rank and Kendall's tau correlation coefficient and simple regression models. Findings & Value added: The outcomes indicate that in the case of Poland in the analyzed period there is no statistically significant relation between the degree of monopoly and price flexibility and also between the market power and price flexibility. Thus, the findings of the analysis support the studies which reject the assumption that higher degree of monopoly or higher market power of an enterprise is followed by less flexible prices.

Some Notes on Historical, Theoretical, and Empirical Background of DSGE Models

86%

Slanicay M.

Review of Economic Perspectives

2014

vol. 14

issue 2

145-164

In this paper I present the historical, theoretical and empirical background of DSGE models. I show that the fundament of these models lies in optimizing agents framework and argue which impulses fueled the development of DSGE models. I demonstrate the evolution of DSGE models with an accent on the role and effects of the monetary policy, using distinction between RBC models and New Keynesian models. I explain the paradigm shift from the RBC models to the New Keynesian models by pointing out the main pitfalls of the RBC models and showing how adding nominal rigidities to the otherwise standard RBC models enhances empirical properties of these models. I also discuss how nominal rigidities are modeled in New Keynesian DSGE models and what the pros and cons of different approaches are. Finally, I review the most important New Keynesian theories of nominal rigidities and some of the empirical evidence on price and wage rigidities

Refine search results

1 Oeconomia Copernicana

1 Review of Economic Perspectives

1 Slanicay M.

1 Umiński P.

1 2020

1 2014

Search results

Degree of monopoly and market power vs. price flexibility in Polish economy: empirical analysis based on COICOP classification

Some Notes on Historical, Theoretical, and Empirical Background of DSGE Models