RBC models and the hours-wages puzzle : puzzle solved!

Aleksandar Vasilev

This paper shows that a modified real business cycle (RBC) model, one that includes home production and fiscal spending shocks, can solve one of the RBC puzzles and generates zero correlation between wages and hours. In addition, the micro-founded model presented here provides a sound theoretical model to analyze fiscal policy in a neoclassical framework and is able to capture many aspects of the data that the benchmark RBC model was missing.

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Year of publication:	April 22, 2015
Authors:	Vasilev, Aleksandar
Publisher:	[Kiel : ZBW
Subject:	fiscal policy \| home production \| government spending shock \| indivisible labor \| Öffentliche Ausgaben \| Public expenditure \| Real-Business-Cycle-Theorie \| Real business cycle model \| Finanzpolitik \| Fiscal policy \| Schock \| Shock \| Haushaltsproduktion \| Household production \| Arbeitsangebot \| Labour supply

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Extent:	1 Online-Ressource (circa 14 Seiten)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/142466 [Handle]
Classification:	C63 - Computational Techniques ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; E32 - Business Fluctuations; Cycles
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011500192