SUERF Policy Brief How do Sectoral Elasticities Affect the Transmission

However, with the increasing focus on the dimensions of heterogeneity1 and the availability of more granular data, the significance of these factors may be underestimated. [...] In this brief, I investigate this issue by relying on the role of heterogeneity in the degree of price rigidity, building on a substantial body of literature that highlights the importance of this dimension in the transmission of shocks, such for instance, Pasten et al. [...] In the first row are presented the results of total output, in the second-row output in the manufacturing sector, and in the third-row output in the services sector. [...] In the first row are presented the results of annual inflation, in the second row, real annual interest rate, in the third row, real wages in the manufacturing sector, and in the fourth row, real wages in the services sector. [...] The views expressed are those of the authors and not necessarily those of the institutions the authors are affiliated with.