MPCs, MPEs and Multipliers : A Trilemma for New Keynesian Models

Adrien Auclert, Bence Bardóczy, Matthew Rognlie

We establish an impossibility result for New Keynesian models with a frictionless labor market: these models cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), marginal propensities to earn (MPEs), and fiscal multipliers. A HANK model with sticky wages provides a solution to this trilemma

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Year of publication:	July 2020
Authors:	Auclert, Adrien
Other Persons:	Bardóczy, Bence (contributor) ; Rognlie, Matthew (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	2020: Cambridge, Mass : National Bureau of Economic Research
Subject:	Arbeitsmarkt \| Labour market \| Multiplikator \| Multiplier \| Neoklassische Synthese \| Neoclassical synthesis \| Marginalanalyse \| Marginal analysis

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Extent:	1 Online-Ressource illustrations (black and white)
Series:	NBER working paper series ; no. w27486
Type of publication:	Book / Working Paper
Language:	English
Notes:	System requirements: Adobe [Acrobat] Reader required for PDF files Mode of access: World Wide Web Hardcopy version available to institutional subscribers
Other identifiers:	10.3386/w27486 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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