Muscatelli, V. Anton; Tirelli, Patrizio; Trescroci, Carmine - Department of Economics, Adam Smith Business School - 2003
This paper derives a NewKeynesiandynamic general equilibrium model with liquidity constrained consumers and sticky prices. The model allows a role for both government spending and taxation in the DGE model. The mode lis then estimated using US data. We demonstrate that there seems to be a...