I am searching for an existing example, in levels, that has price stickiness in the retail sector (so, for example, there is the intermediate good sector, a wholesale sector, and monopolistic retailers adjusting prices a la Calvo). Unfortunately, the benchmark DSGE provided with Dynare does not have sticky prices in the retail sector.
I obtained the following conditions for the price setting block, but it doesn’t work. Anyone has an example to compare?
1 = thetap*pie^(1/mmu)+(1-thetap)*pie_star^(-(1/mmu)); (1+mmu)*g1=g2; g1=slambda*mc*(Y+(thetap*pie(+1)^((1+mmu)/mmu)*g1(+1))); g2 = slambda*((pie_star*(Y+thetap*betta*(pie(+1)^(1/mmu)/pie_star(+1)*g2(+1))))); mc=(1/(1-alpha))^(1-alpha)*(1/alpha)^alpha*w^(1-alpha)*rk^alpha;