Liu, Zheng; Waggoner, Daniel F.; Zha, Tao - 2009
decisions than those obtained in other studies
(Smets and Wouters, 2007). The marginal posterior distributions assign little … probabil-
ity to the Calvo price stickiness parameter above 0:6 and the wage stickiness parameter
2Previous DSGE studies have … investment, Bt+1 is a nominal state-contingent
bond that represents a claim to one dollar in a particular event in period t + 1 …