Cantore, Cristiano; León-Ledesma, Miguel A.; McAdam, Peter - European Central Bank - 2010
more general and data coherent supply and production framework (“normalized” factor-augmenting CES technology), both models … positive and negative contemporaneous correlations for both models. These will crucially depend on the factor …-augmentation nature of the shock, the elasticity of factor substitution, the capital income share, and the reaction of consumption. The …