Data and Code for: Dynamic Oligopoly and Price Stickiness

Codes for "Dynamic Oligopoly and Price Stickiness" in Mathematica and MATLAB.<br><br>Abstract: How does market concentration affect the potency of monetary policy? To tackle this question we build a model with oligopolistic sectors. We provide a formula for the response of aggregate output to monetary shocks in terms of sufficient statistics: demand elas- ticities, concentration, and markups. We calibrate our model to the evidence on pass-through, and find that higher concentration significantly amplifies non-neutrality. To isolate the strategic effects of oligopoly, we compare our model to one with monopolistic competition recalibrated to ensure firms face comparable demand functions. Finally, we compute an exact Phillips curve for our model. Qualitatively, our Phillips curve incorporates extra terms relative to the standard New Keynesian one. However, quantitatively, we show that a standard Phillips curve, appropriately recalibrated, provides an excellent approximation.