A Model of Rule-of-Thumb Consumers With Nominal Price and Wage Rigidities

Sergio Ocampo

Borradores de Economia from Banco de la Republica de Colombia

Abstract: This document presents a dynamic stochastic general equilibrium model with rule of thumb (Non-Ricardian) agents and both nominal price and wage rigidities. The model follows closely that of Galí et al. (2004) and expands it to include a second way form of heterogeneity (besides the Non-Ricardian agents), namely the nominal wage stickiness á la Calvo, as in Erceg et al. (2000). Special attention is given to the algebraic details of the model. The model is calibrated and its dynamics are explored trough the analysis of impulse response functions.

Keywords: DSGE; nominal rigidities; rule of thumb consumers. (search for similar items in EconPapers)
JEL-codes: C68 E32 E37 (search for similar items in EconPapers)
Pages: 25
Date: 2012-05
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://doi.org/10.32468/be.707 (application/pdf)

Related works:
Journal Article: A Model of Rule-of-Thumb Consumers With Nominal Price and Wage Rigidities (2012)
Working Paper: A Model of Rule-of-Thumb Consumers With Nominal Price and Wage Rigidities (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:707

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