Solórzano Rueda, Jorge Diego (2017) Essays in macroeconomics using microdata. PhD thesis, University of Warwick.

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Abstract

Price and wage setting are key elements in empirical and theoretical macroeconomic research. In recent years, large micro datasets with millions of observations have expanded our knowledge of wage and price setting practices. Aside from addressing old questions, new salient facts have emerged and have led to improvements, clarifications, criticisms and even new research lines.

One of these new findings in microeconomic research is the high degree of heterogeneity in the behaviour of price and wage setters. This dissertation adds to the research of using large micro datasets to document heterogeneity in price and wage setting, its implications for aggregate dynamics and potential drivers shaping heterogeneous responses.

In chapter one, we provide an introduction to our research on price and wage heterogeneity and provide a short summary of the following two chapters.

In chapter two, we merge three large price and wage micro-datasets at industry level and show that the frequency of price and wage adjustments are positively correlated. Furthermore, using a multi-sector DSGE model, we find that adding heterogeneity in both prices and wages generates small differences in aggregate dynamics compared to a model with heterogeneity in only one of them.

In chapter three, we investigate whether price responses to exchange rate shocks, the so-called exchange-rate pass-through, are asymmetric across regions and type of goods. Results suggest heterogeneous pass-through elasticities and that regional and industry characteristics play a role in shaping this heterogeneity. For instance, distance to the border, import intensity, price change dispersion and expenditure share affect positively the degree of pass-through; while regional market density has a negative relationship with pass-through rates.

In chapter four, we conclude by presenting a recap of findings from the two main chapters of this dissertation and outline future research.

Item Type:	Thesis or Dissertation (PhD)
Subjects:	H Social Sciences > HB Economic Theory
Library of Congress Subject Headings (LCSH):	Macroeconomics, Wages, Prices, Exchange rate pass-through
Official Date:	September 2017
Dates:	Date Event September 2017 UNSPECIFIED
Institution:	University of Warwick
Theses Department:	Department of Economics
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Chen, Natalie ; Gozzi, Juan Carlos
Sponsors:	Consejo nacional de ciencia y tecnología (México) ; Banco de México (1925- ) ; University of Warwick. Department of Economics
Extent:	vii, 110 leaves : charts
Language:	eng

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