RBC Models and the Hours-Wages Puzzle: Puzzle Solved!

• Autorzy: Vasilev Aleksandar
• Języki publikacji: EN

Abstrakty

EN

This paper shows that a modified real business cycle (RBC) model, one that includes home production and fiscal spending shocks, can solve one of the RBC puzzles and generates zero correlation between wages and hours. In addition, the micro-founded model presented here provides a sound theoretical model to analyze fiscal policy in a neoclassical framework and is able to capture many aspects of the data that the benchmark RBC model was missing

Słowa kluczowe

EN

fiscal policy; home production; government spending shock; indivisible labor

• Wydawca: Wydział Nauk Ekonomicznych Uniwersytetu Warszawskiego
• Czasopismo: Ekonomia. Rynek, Gospodarka, Społeczeństwo
• Rocznik: 2015
• Numer: 41
• Strony: 117-130

Twórcy

autor

Vasilev Aleksandar

• CERGE-EI Affiliate Fellow, Department of Economics, American University in Bulgaria

Bibliografia

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• Rogerson, Richard. 1988. “Indivisible Labor, Lotteries and Equilibrium.” Journal of Monetary Economics 21: 3-16.
• Vasilev, Aleksandar. 2015a. “Aggregation with a mix of indivisible and continuous labor supply decisions: the case of home production.” International Journal of Social Economics, accepted.
• Vasilev, Aleksandar. 2015b. “US Health and Aggregate Fluctuations.” Bulgarian Economic Papers, St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration/Center for Economic Theories and Policies, revised Feb 2015.

Identyfikatory

DOI

10.17451/eko/41/2015/108