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Labour market frictions, monetary policy and durable goods
Item metadata
dc.contributor.author | Di Pace, Federico Nicolas | |
dc.contributor.author | Hertweck, Matthias | |
dc.date.accessioned | 2013-10-17T10:31:01Z | |
dc.date.available | 2013-10-17T10:31:01Z | |
dc.date.issued | 2012-06-06 | |
dc.identifier.citation | Di Pace , F N & Hertweck , M 2012 ' Labour market frictions, monetary policy and durable goods ' Department of Economics Working Paper Series , no. 2012-09 , University of Konstanz . | en |
dc.identifier.other | PURE: 63653420 | |
dc.identifier.other | PURE UUID: 6f8069c6-ef24-469a-93cd-1bd109e4ba5e | |
dc.identifier.uri | https://hdl.handle.net/10023/4100 | |
dc.description.abstract | The standard two-sector monetary business cycle model suffers from an important deficiency. Since durable good prices are more flexible than non-durable good prices, optimising households build up the stock of durable goods at low cost after a monetary contraction. Consequently, sectoral outputs move in opposite directions. This paper finds that labour market frictions help to understand the so-called sectoral “comovement puzzle”. Our benchmark model with staggered Right-to-Manage wage bargaining closely matches the empirical elasticities of output, employment and hours per worker across sectors. The model with Nash bargaining, in contrast, predicts that firms adjust employment exclusively along the extensive margin. | |
dc.format.extent | 33 | |
dc.language.iso | eng | |
dc.publisher | University of Konstanz | |
dc.relation.ispartofseries | Department of Economics Working Paper Series | en |
dc.subject | Durable production | en |
dc.subject | Labour market frictions | en |
dc.subject | Sectoral comovement | en |
dc.subject | Monetary policy | en |
dc.subject | HD Industries. Land use. Labor | en |
dc.subject | HJ Public Finance | en |
dc.subject | SDG 15 - Life on Land | en |
dc.subject.lcc | HD | en |
dc.subject.lcc | HJ | en |
dc.title | Labour market frictions, monetary policy and durable goods | en |
dc.type | Working or discussion paper | en |
dc.description.version | Postprint | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.url | http://ideas.repec.org/p/knz/dpteco/1209.html | en |
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