generates realistic predictions on the moments of other variables and provides peresistent propagation of the shocks. The model …

Many real business cycle models lack a significant propagation mechanism. Consequently most of the serial correlation …

Does it matter for the propagation mechanism following nominal shocks whether nominal rigidities are specified as … persistence pattern. Specifically, nominal wage and price rigidities are equivalent "impact adjusted" propagation mechanisms …

We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by …

invest when the aggregate demand is high. This causes a propagation of investment across sectors. When the investment follows … an (S,s) policy, the propagation size can exhibit a significant fluctuation. We characterize the probability distribution … of the propagation size, and show that its variance can be large enough to match the observed investment fluctuations. We …

important propagation mechanism in a dynamic stochastic general equilibrium model, as the current labour supply affects future …

invest when the aggregate demand is high. This causes a propagation of investment across sectors. When the investment follows … an (S,s) policy, the propagation size can exhibit a significant fluctuation. We derive the probability distribution of … the propagation size, and show that its variance can be large enough to match the observed investment fluctuations. We …