Quadratic labor adjustment costs and the New-Keynesian model

Wolfgang Lechthaler and Dennis J. Snower

No 1453, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence.

Keywords: monetary persistence; labor adjustment costs (search for similar items in EconPapers)
JEL-codes: E24 E32 E52 J23 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1453

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