Hi,
In major of topics that i read in internet,there are two type of firm:final good firms and intermediate firms.
And in the majority of them the intermediate firms have a calvo price setting.
If possible,can you introduce some sources about calvo price setting in final goods firms ?
Especially,I need the equations that i must import in dynare.
Thanks
I believe the Bernanke, Gertler and Gilchriest Financial Accelerator paper is one where retailers are introduced simply as a way to incorporate Calvo pricing.
There is also a literature involving New Keynesian models with an intermediate sector characterized with search and matching in the labor market; these intermediate producers then sell their output to retailers (in a perfectly competitive market), which costlessly differentiate it and sell the (now) final good in a market characterized by monopolistic competition and Calvo price stickiness.
For dynare code, I believe the BGG Financial Accelerator code has been posted all over this forum.
Balke et al. (2021) (In no uncertain terms: The effect of uncertainty on credit frictions and monetary policy - ScienceDirect) is another example where sticky prices are introduced at the retail level. The model derivations are described in the supplementary material and the Dynare code is available on one of the authors’ website:(emgeconomics - Monetary Policy).
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