In this paper, we compute a model focusing on medium term dynamics, in the line of Caballero and Hammour (1998). The main features of the model are a putty-clay production function and the bargaining between workers and firms over the rent. Although using vintage units of production is a...

Many recent large macro-econometric models assume perfect foresight (for instance the multinational models Multimod Mark 3 and Quest 2). This choice has been made possible by the development of simulation algorithms, which are powerful and easy to use (for example the command Stacks and Lkroot...