EconPapers    
Economics at your fingertips  
 

Credit Frictions and the Comovement between Durable and Non-durable Consumption

Vincent Sterk

DNB Working Papers from Netherlands Central Bank, Research Department

Abstract: According to Monacelli (2009), a standard New-Keynesian model augmented with credit frictions solves the outstanding challenge to generate a joint decline of durable and non-durable consumption during a monetary tightening. This paper shows that his success in generating positive comovement between durables and non-durables is solely due to assumptions about price-stickiness in the durable goods sector and that the introduction of credit frictions actually makes the comovement problem harder to solve

Keywords: New-Keynesian models; financial frictions; general equilibrium (search for similar items in EconPapers)
JEL-codes: E44 E52 (search for similar items in EconPapers)
Date: 2009-04
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 (7) Track citations by RSS feed

Downloads: (external link)
https://www.dnb.nl/en/binaries/Working%20paper%20210_tcm47-216656.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://www.dnb.nl/en/binaries/Working%20paper%20210_tcm47-216656.pdf [301 Moved Permanently]--> https://www.dnb.nl/en/binaries/working%20paper%20210_tcm47-216656.pdf)

Related works:
Journal Article: Credit frictions and the comovement between durable and non-durable consumption (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:210

Access Statistics for this paper

More papers in DNB Working Papers from Netherlands Central Bank, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Richard Heuver ().

 
Page updated 2021-10-15
Handle: RePEc:dnb:dnbwpp:210