Update description & tags of Phillips curve paper

Author: pmichaillat

content/papers/15.md

@@ -1,12 +1,11 @@
 ---
 title: "Beveridgean Phillips Curve" 
 date: 2024-10-25
-# lastmod: 2024-08-25
 url: /15/
-tags: ["Beveridge curve", "business cycles", "directed search", "divine coincidence", "economic slack", "inflation", "kinked Phillips curve", "matching model", "monetary policy", "Phillips curve", "price rigidity", "tightness gap", "unemployment gap", "wealth in the utility"]
+tags: ["Beveridge curve", "directed search", "divine coincidence", "economic slack", "kinked Phillips curve", "matching model", "monetary policy", "Phillips curve", "tightness gap", "unemployment gap", "wealth in the utility"]
 author: ["Pascal Michaillat","Emmanuel Saez"]
-description: "This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient." 
-summary: "This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient. The divine coincidence arises from directed search under a quadratic price-adjustment cost." 
+description: "This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment." 
+summary: "This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment. The Phillips curve is kinked if wage cuts are more costly to producers than price hikes." 
 cover:
     image: "/15s.png"
     alt: "Phillips curve in the United States"

content/papers/8.md

@@ -11,7 +11,7 @@ aliases:
     - /tags/fairness/
     - /tags/cost-passthrough/
     - /tags/markups/
-tags: ["corporate greed", "fair markups", "fair prices", "inflation", "inflation aversion", "monetary policy", "monopoly pricing", "misinference", "New Keynesian model", "Phillips curve", "price rigidity"]
+tags: ["corporate greed", "fair markups", "fair prices", "inflation aversion", "monetary policy", "monopoly pricing", "misinference", "New Keynesian model", "Phillips curve", "price rigidity"]
 author: ["Erik Eyster","Kristof Madarasz","Pascal Michaillat"]
 description: "To explain price rigidity, this paper develops a model in which buyers care about the fairness of markups but cannot observe them. Published in JEEA, 2021." 
 summary: "This paper develops a model of pricing in which buyers care about the fairness of markups but misinfer them from prices. The model yields price rigidity, generates realistic Phillips curves, and explains why people dislike inflation so much." 

public/15/index.html

@@ -6,8 +6,8 @@
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 <title>Beveridgean Phillips Curve | Pascal Michaillat</title>
-<meta name="keywords" content="Beveridge curve, business cycles, directed search, divine coincidence, economic slack, inflation, kinked Phillips curve, matching model, monetary policy, Phillips curve, price rigidity, tightness gap, unemployment gap, wealth in the utility">
-<meta name="description" content="This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient.">
+<meta name="keywords" content="Beveridge curve, directed search, divine coincidence, economic slack, kinked Phillips curve, matching model, monetary policy, Phillips curve, tightness gap, unemployment gap, wealth in the utility">
+<meta name="description" content="This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment.">
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-<meta property="og:description" content="This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient." />
+<meta property="og:description" content="This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment." />
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@@ -29,7 +29,7 @@
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+<meta name="twitter:description" content="This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment."/>
 
 
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@@ -58,9 +58,9 @@
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   "headline": "Beveridgean Phillips Curve",
   "name": "Beveridgean Phillips Curve",
-  "description": "This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient.",
+  "description": "This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment.",
   "keywords": [
-    "Beveridge curve", "business cycles", "directed search", "divine coincidence", "economic slack", "inflation", "kinked Phillips curve", "matching model", "monetary policy", "Phillips curve", "price rigidity", "tightness gap", "unemployment gap", "wealth in the utility"
+    "Beveridge curve", "directed search", "divine coincidence", "economic slack", "kinked Phillips curve", "matching model", "monetary policy", "Phillips curve", "tightness gap", "unemployment gap", "wealth in the utility"
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   "articleBody": " Paper Abstract This paper proposes a new, Beveridgean model of the Phillips curve. While the New Keynesian Phillips Curve is based on monopolistic pricing under price-adjustment costs, the Beveridgean Phillips curve is based on directed-search pricing under price-adjustment costs. Under directed-search pricing, prices respond to slack instead of marginal costs. The Beveridgean Phillips curve links the inflation gap to the unemployment gap, with the following properties. First, it produces the divine coincidence: it guarantees that the rate of inflation is on target whenever the rate of unemployment is efficient. Second, whenever the Beveridge curve shifts, the Phillips curve shifts if it is formulated with inflation and unemployment, but it remains unaffected if it is formulated with inflation and labor-market tightness. Third, the Phillips curve displays a kink at the point of divine coincidence if we assume that wage decreases—which reduce workers’ morale—are more costly to producers than price increases—which upset customers. These three properties describe recent US data well.\nFigure 1: Phillips curve in the United States, 2020–2024 Figure 9A: Response to a negative aggregate-demand shock with a kinked Phillips curve Figure 9B: Response to a negative aggregate-supply shock with a kinked Phillips curve Citation Michaillat, Pascal, and Emmanuel Saez. 2024. “Beveridgean Phillips Curve.” arXiv:2401.12475v2. https://doi.org/10.48550/arXiv.2401.12475 .\n@techreport{MS24, author = {Pascal Michaillat and Emmanuel Saez}, year = {2024}, title = {Beveridgean Phillips Curve}, number = {arXiv:2401.12475v2}, url = {https://doi.org/10.48550/arXiv.2401.12475}} ",
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@@ -220,16 +220,13 @@ <h5 id="citation">Citation</h5>
   <footer class="post-footer">
     <ul class="post-tags">
       <li><a href="https://pascalmichaillat.org/tags/beveridge-curve/">Beveridge curve</a></li>
-      <li><a href="https://pascalmichaillat.org/tags/business-cycles/">business cycles</a></li>
       <li><a href="https://pascalmichaillat.org/tags/directed-search/">directed search</a></li>
       <li><a href="https://pascalmichaillat.org/tags/divine-coincidence/">divine coincidence</a></li>
       <li><a href="https://pascalmichaillat.org/tags/economic-slack/">economic slack</a></li>
-      <li><a href="https://pascalmichaillat.org/tags/inflation/">inflation</a></li>
       <li><a href="https://pascalmichaillat.org/tags/kinked-phillips-curve/">kinked Phillips curve</a></li>
       <li><a href="https://pascalmichaillat.org/tags/matching-model/">matching model</a></li>
       <li><a href="https://pascalmichaillat.org/tags/monetary-policy/">monetary policy</a></li>
       <li><a href="https://pascalmichaillat.org/tags/phillips-curve/">Phillips curve</a></li>
-      <li><a href="https://pascalmichaillat.org/tags/price-rigidity/">price rigidity</a></li>
       <li><a href="https://pascalmichaillat.org/tags/tightness-gap/">tightness gap</a></li>
       <li><a href="https://pascalmichaillat.org/tags/unemployment-gap/">unemployment gap</a></li>
       <li><a href="https://pascalmichaillat.org/tags/wealth-in-the-utility/">wealth in the utility</a></li>

public/8/index.html

@@ -6,7 +6,7 @@
 <meta name="viewport" content="width=device-width, initial-scale=1, shrink-to-fit=no">
 <meta name="robots" content="index, follow">
 <title>Pricing under Fairness Concerns | Pascal Michaillat</title>
-<meta name="keywords" content="corporate greed, fair markups, fair prices, inflation, inflation aversion, monetary policy, monopoly pricing, misinference, New Keynesian model, Phillips curve, price rigidity">
+<meta name="keywords" content="corporate greed, fair markups, fair prices, inflation aversion, monetary policy, monopoly pricing, misinference, New Keynesian model, Phillips curve, price rigidity">
 <meta name="description" content="To explain price rigidity, this paper develops a model in which buyers care about the fairness of markups but cannot observe them. Published in JEEA, 2021.">
 <meta name="author" content="Erik Eyster,&thinsp;Kristof Madarasz,&thinsp;Pascal Michaillat">
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@@ -60,7 +60,7 @@
   "name": "Pricing under Fairness Concerns",
   "description": "To explain price rigidity, this paper develops a model in which buyers care about the fairness of markups but cannot observe them. Published in JEEA, 2021.",
   "keywords": [
-    "corporate greed", "fair markups", "fair prices", "inflation", "inflation aversion", "monetary policy", "monopoly pricing", "misinference", "New Keynesian model", "Phillips curve", "price rigidity"
+    "corporate greed", "fair markups", "fair prices", "inflation aversion", "monetary policy", "monopoly pricing", "misinference", "New Keynesian model", "Phillips curve", "price rigidity"
   ],
   "articleBody": " Paper Online appendix Code and data Abstract This paper proposes a theory of pricing premised upon the assumptions that customers dislike unfair prices—those marked up steeply over cost—and that firms take these concerns into account when setting prices. Because they do not observe firms’ costs, customers must extract costs from prices. The theory assumes that customers infer less than rationally: When a price rises due to a cost increase, customers partially misattribute the higher price to a higher markup—which they find unfair. Firms anticipate this response and trim their price increases, which drives the passthrough of costs into prices below one: Prices are somewhat rigid. Embedded in a New Keynesian model as a replacement for the usual pricing frictions, our theory produces monetary nonneutrality: When monetary policy loosens and inflation rises, customers misperceive markups as higher and feel unfairly treated; firms mitigate this perceived unfairness by reducing their markups; in general equilibrium, employment rises. The theory also features a hybrid short-run Phillips curve, realistic impulse responses of output and employment to monetary and technology shocks, and an upward-sloping long-run Phillips curve.\nFigure 1: Impulse responses to an expansionary monetary shock in the New Keynesian model with fairness Citation Eyster, Erik, Kristof Madarasz, and Pascal Michaillat. 2021. “Pricing under Fairness Concerns.” Journal of the European Economic Association 19 (3): 1853–1898. https://doi.org/10.1093/jeea/jvaa041 .\n@article{EMM21, author = {Erik Eyster and Kristof Madarasz and Pascal Michaillat}, year = {2021}, title = {Pricing under Fairness Concerns}, journal = {Journal of the European Economic Association}, volume = {19}, number = {3}, pages = {1853--1898}, url = {https://doi.org/10.1093/jeea/jvaa041}} Related material Presentation slides Previous version of the paper (2019) – This version extends the pricing model to study disclosure of costs by firms. With disclosure, the passthrough of costs into prices is asymmetric. Firms choose to disclose cost increases but refuse to disclose cost decreases. As a result, firms pass through cost increases completely into prices but only pass through cost decreases incompletely into prices. The paper also provides photographic evidence of such behavior: firms commonly post signs alerting customers that costs increased so prices must go up too. ",
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@@ -230,7 +230,6 @@ <h5 id="related-material">Related material</h5>
       <li><a href="https://pascalmichaillat.org/tags/corporate-greed/">corporate greed</a></li>
       <li><a href="https://pascalmichaillat.org/tags/fair-markups/">fair markups</a></li>
       <li><a href="https://pascalmichaillat.org/tags/fair-prices/">fair prices</a></li>
-      <li><a href="https://pascalmichaillat.org/tags/inflation/">inflation</a></li>
       <li><a href="https://pascalmichaillat.org/tags/inflation-aversion/">inflation aversion</a></li>
       <li><a href="https://pascalmichaillat.org/tags/monetary-policy/">monetary policy</a></li>
       <li><a href="https://pascalmichaillat.org/tags/monopoly-pricing/">monopoly pricing</a></li>

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-      <description>This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient.</description>
+      <description>This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment.</description>
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     <item>
       <title>Modeling Migration-Induced Unemployment</title>

public/papers/index.html

@@ -140,7 +140,7 @@ <h2 class="entry-hint-parent">Beveridgean Phillips Curve
     </h2>
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   <div class="entry-content">
-    <p>This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient. The divine coincidence arises from directed search under a quadratic price-adjustment cost.</p>
+    <p>This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment. The Phillips curve is kinked if wage cuts are more costly to producers than price hikes.</p>
   </div>
   <footer class="entry-footer"><span title='2024-10-25 00:00:00 +0000 UTC'>October 2024</span>&nbsp;&middot;&nbsp;Pascal Michaillat,&thinsp;Emmanuel Saez</footer>
   <a class="entry-link" aria-label="post link to Beveridgean Phillips Curve" href="https://pascalmichaillat.org/15/"></a>

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-      <description>This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient.</description>
+      <description>This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment.</description>
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       <title>Modeling Migration-Induced Unemployment</title>

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public/tags/beveridge-curve/index.html

@@ -126,7 +126,7 @@ <h2 class="entry-hint-parent">Beveridgean Phillips Curve
     </h2>
   </header>
   <div class="entry-content">
-    <p>This paper develops a simple business-cycle model with divine coincidence: inflation is on target when unemployment is efficient. The divine coincidence arises from directed search under a quadratic price-adjustment cost.</p>
+    <p>This paper builds a Beveridgean model of the Phillips curve. Prices respond to slack so the divine coincidence holds: prices are stable at full employment. The Phillips curve is kinked if wage cuts are more costly to producers than price hikes.</p>
   </div>
   <footer class="entry-footer"><span title='2024-10-25 00:00:00 +0000 UTC'>October 2024</span>&nbsp;&middot;&nbsp;Pascal Michaillat,&thinsp;Emmanuel Saez</footer>
   <a class="entry-link" aria-label="post link to Beveridgean Phillips Curve" href="https://pascalmichaillat.org/15/"></a>