We examine the long-run output-inflation trade-off under the assumption that firms face menu costs and set prices in a state dependent fashion. We argue that these characteristics capture the idea that the long-run output-inflation trade-off is driven by (predictable) trend inflation, and the...

We unravel two drastically different paths for the uninsured and for people with employer-sponsored health insurance (ESI) to cope with the economic consequences of health shocks. The uninsured individuals support their incomes mostly from other non-labor income sources, public transfers and...