Ikeda, S.; Gombi, I. - Institute of Social and Economic Research (ISER), Osaka … - 1995
economy and derive empirical and welfare implications. The model can mimic some stylized facts: (i) a temporary increase in …-move upon macroeconomic shocks. Strong habit persistence causes sluggishness in welfare dynamics. Consequently, a beneficial … fiscal policy may have a harmful hangover effect on the future welfare. …