Quadratic labor adjustment costs and the New-Keynesian model

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence.

Year of publication:	2008
Authors:	Lechthaler, Wolfgang ; Snower, Dennis J.
Publisher:	Kiel : Kiel Institute for the World Economy (IfW)
Subject:	Preisrigidität \| Arbeitsmarkt \| Anpassungskosten \| Ungleichgewichtstheorie \| Konjunkturtheorie \| Theorie \| monetary persistence \| labor adjustment costs

More details

Series:	Kiel Working Paper ; 1453
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	579118363 [GVK] hdl:10419/24847 [Handle] RePEc:zbw:ifwkwp:1453 [RePEc]
Classification:	E24 - Employment; Unemployment; Wages ; E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
Source:	EconStor

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