In this paper we present a macroeconomic foundation of downward money price inflexibility based on classical Monetary Economics. We show that under the principle of risk aversion and the neutral money axiom, our model ...

We examine price responses to ad-valorem tax changes in the Brazilian food market over the period 1994-2008. In particular, we investigate VAT incidence for ten goods representing basic basket food in 16 states. Our results ...

In this chapter, the Smets-Wouters (2003) New Kenesian model is reformulated by introducing the loss aversion utility function developed in chapter two. The purpose of this is to understand how asymmetric real business ...

In this paper we characterize the average response of output to aggregate demand shocks in an economy where individual firms follow state-dependent pricing rules. We find that: (i) the average response of output to aggregate ...

This paper develops a family of autoregressive conditional duration (ACD) models that encompasses most specifications in the literature. The nesting relies on a Box-Cox transformation with shape parameter λ to the conditional ...

Managers know more about the performance of the organization than investors, which makes the disclosure of information a possible strategy for competitive differentiation, minimizing adverse selection. This paper's main ...

Through an Error Correction Model this study explores possible asymmetries in the passthrough of the oil prices to gasoline and diesel prices in the US market and, mainly, analyzes if the trends reversals of those refined ...