Dear Johannes,
In my two-country DSGE model-one developed country and one developing country, I already specified price stickiness, regarding wage stickiness, does it more suited to developing country or developed country?
Thank you very much and look forward to hearing from you.
Best regards,
Jesse
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Usually, you would expect nominal rigidity to be present in both, potentially with different parameters in the two countries.
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Thank you, but which country seem to have more wage rigidity, developing or developed countries?
That depends on the countries considered. I don’t think you can make general statements.
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