Galí, Jordi; López-Salidoz, J. David; Vallés, Javier - Center for Financial Studies - 2004
optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non … shocks on consumption cannot be
easily reconciled with existing optimizing business cycle models. We extend the standard … also found in Fatas and Mihov (2001) when measured as compensation per
hour in the non-farm business sector.
Finally, the …