Ravenna, Federico; Walsh, Carl E. - 2009
sticky prices and search and matching frictions in the labor market. We show
that the second-order approximation to the … (2008b) discuss how each of the distortions in models with staggered price setting and
labor market frictions affects the … an estimated model with search
and matching frictions in the labor market, but they use an ad hoc quadratic loss function …