Rule-of-thumb consumers, productivity and hours
Francesco Furlanetto () and
No 2007/05, Working Paper from Norges Bank
In this paper we study the transmission mechanisms of productivity shocks in a model with rule-of-thumb consumers. In the literature, this financial friction has been studied only with reference to fiscal shocks. We show that the presence of rule-of-thumb consumers is also very helpful in accounting for recent empirical evidence on productivity shocks. Rule-of-thumb agents, together with nominal and real rigidities, play an important role in reproducing the negative response of hours and the delayed responses of output and consumption after a productivity shock.
Keywords: rule-of-thumb consumers; productivity shocks; nominal rigidities; real rigidities. (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
https://www.norges-bank.no/en/news-events/news-pub ... apers/2007/WP-20075/
Journal Article: Rule-of-Thumb Consumers, Productivity, and Hours (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bno:worpap:2007_05
Access Statistics for this paper
More papers in Working Paper from Norges Bank Contact information at EDIRC.
Bibliographic data for series maintained by ().