# kaal:claim:6421319-027

**Claim.** The Calvo pricing frictions and persistence parameters that dominate modern DSGE models become unnecessary when contracts and prices adjust continuously rather than in staggered human time.

**Type.** failure  **Support.** argued

**Holds when.**

- applies once agents adjust contracts and prices continuously

**Source quote.**

> The Calvo pricing frictions and persistence parameters that dominate modern DSGE models become unnecessary when contracts and prices adjust continuously rather than in staggered human time.

**From.** Wulf A. Kaal, *The Collapse of Scarcity Economics* (2026), VI.B. Arrow-Debreu Completeness as Operational Reality, page 24

**Cite as.** Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319

**Verify.** sha256 of source PDF `0f4f68e56ee48bb8b2d73d3ab7fd96fa572e76c195694ffa740360704c1b172d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20The%20Collapse%20of%20Scarcity%20Economics.pdf

**Failure mode.** DSGE Friction Obsolescence  (family: research-design-limitation)

**Topics.** economics

**Keywords.** dsge, price-frictions, macroeconomic-modeling, calvo-pricing

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.