Nominal Wage Rigidities in a New Keynesian Model with Frictional Unemployment

In this paper, we propose a search and matching model with nominal stickiness à la Calvo in the wage bargaining. We analyze the properties of the model, first, in the context of a typical real business cycle model driven by stochastic productivity shocks and second, in a fully specified monetary DSGE model with various real and nominal rigidities and multiple shocks. The model generates realistic statistics for the important labor market variables.

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Year of publication:	2006-12
Authors:	Bodart, Vincent ; Walque, Gregory De ; Pierrard, Olivier ; Sneessens, Henri R. ; Wouters, Raf
Institutions:	Institute for the Study of Labor (IZA)
Subject:	DSGE \| search and matching \| nominal wage rigidity \| monetary policy

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2528 40 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005703177