Bentolila, Samuel; Dolado, Juan José; Jimeno, Juan F. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
).
4
Data on productivity are from the EU KLEMS Database, March 2007, www.euklems.net.
5
Lastly, another potential factor …+ξ.
Therefore, equating both expressions and labeling the first-best equilibrium value of a
generic variable x by x
F
, we have that … cumbersome. First,
by iterating (27) forward, we obtain
∆π
∗
t
=(1+β)
∞
X
j=0
β
j
E
t
{bx
t+j
| z
t
}, (29)
where in our …