Monetarism, Rational Expectations, Oligopolistic Pricing, and the MPS Econometric Model
Bibliographic Data
| ID | 10180576 |
|---|---|
| Authors | Bennett T McCallum (0000-0002-7269-3008, corresponding author) |
| Year | 1979 |
| Volume | 87 |
| Issue | 1 |
| Pages | 57-73 |
| Publication date | 1979-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/260739 |
| OpenAlex | W2004638405 |
| Language | EN |
| Citations received | 3 |
| References cited | 4 |
This paper investigates the conjecture that oligopolistic pricing behavior will invalidate the Lucas-Sargent policy-ineffectiveness proposition even if expectations are formed rationally. The procedure is to examine the properties of an analytical macroeconomic model that incorporates a simplified version of the MPS wage-price sector. It is shown that the validity of the conjecture depends upon the precise manner in which lags are built into the price adjustment equation. A crucial condition is isolated and used to motivate an empirical test. The results, based on quarterly U.S. data, are predominantly consistent with the ineffectiveness proposition
Conjecture · Econometric model · Econometrics · Economics · Labour economics · Macroeconomics · Mathematical economics · Microeconomics · Oligopoly · Proposition · Rational expectations · Wage · Economic theories and models · Economic Theory and Policy · Mathematics · Monetary Policy and Economic Impact
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A Classical Macroeconometric Model for the United States
Price-Level Stickiness and the Feasibility of Monetary Stabilization Policy with Rational Expectations
| Unique citing works | 3 |
|---|---|
| Citations per year | 0.06 |
| Citation span | 1979 - 1982 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |