RDP 2010-01: Reconciling Microeconomic and Macroeconomic Estimates of Price Stickiness
Equation
P
j
,
t
1
−
ε
=
1
γ
j
∫
ψ
j
−
1
ψ
j
P
t
(
k
)
1
−
ε
d
k
=
θ
j
P
j
,
t
−
1
1
−
ε
+
(
1
−
θ
j
)
(
P
t
(
k
)
*
)
1
−
ε
.
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