Research projects

Job Market Paper

• "State-dependent pricing and cost-push inflation in a production network economy" [Draft] [Slides]

Abstract. This paper analyzes the role of state-dependent pricing in shaping cost-push inflation in a multi-sector new-Keynesian model with input-output linkages and the sector-specific degree of state-dependent price flexibility. Empirically, I estimate sector-specific price flexibility and the degree of its state dependence by fitting the model to sectoral price and quantity series for the US. I find a significant degree of state dependence in most sectors of the US economy. Theoretically, I show that state-dependent pricing can change the size and reverse the sign of cost-push inflation compared to the non-state-dependent pricing model. Based on the empirical estimates of sector-specific state dependence, I evaluate the quantitative importance of state-dependent pricing for the cost-push inflation in the US over time. State dependence substantially affects model-implied cost-push inflation during particular historical episodes - after the Great Recession and the COVID crises.

Other works in progress

• "Distorted prices and targeted taxes in the New-Keynesian Network Model" with Gernot Müller

• "Endogenous uncertainty and Keynesian supply shocks" with Céline Poilly and Mykhailo Matvieiev

• "Age-specific income risk and consumption over the life-cycle" with Mykhailo Matvieiev

• "News and firm entry: the role of waiting option" with Mykhailo Matvieiev