Addessi, William; Busato, Francesco - Dipartimento di Economia e Diritto, Facoltà di Economia - 2010
This paper develops a two-sector dynamic general equilibrium model in which intertemporal fl‡uctuations (and sectoral comovement) are driven by idiosyncratic shocks to relative preferences between consumption goods. This class of shocks may be interpreted as shifts in consumer tastes. When...