We extend the standard textbook search and matching model by introducing deep habits in consumption. This assumption … deep habits model does not require an implausible variation in the elasticity of demand to match the volatility of labour …

A New-Keynesian model with deep habits and optimal monetary policy delivers a larger-than-1 fiscal multiplier and …

Mortensen-Pissarides labour market frictions, deep habits and a constant-elasticity-of-substitution (CES) production function …. The combination of deep habits and CES technology is crucial. The presence of deep habits enables the model to deliver …

to optimal monetary policy. We explore this consensus assignment in an economy subject to ‘deep’ habits at the level of … economy subject to the additional externality of deep habits and explore the ability of simple (but potentially nonlinear …

This paper introduces deep habits into a sticky-price sticky-wage economy and asks whether the countercyclical markup … movements induced by deep habits is helpful for accounting for the dynamic effects of monetary policy shocks. We find that this … is the case: When allowing for deep habits, the model can account very precisely for the persistent impact of monetary …

level and that prices are substantially less volatile than costs. We show that in the relative-deep-habits model of Ravn …-shaped in the strength of habits. The relative-deep-habits model implies that conditional on marginal cost disturbances, prices …

This paper proposes a novel international transmission mechanism based on the assumption of deep habits. The term deep … habits stands for a preference specification according to which consumers form habits on a good-by-good basis. Under deep … habits, firms face more elastic demand functions in markets where nonhabitual demand is high relative to habitual demand …

We derive and estimate a New Keynesian Phillips curve (NKPC) in a model where consumers are assumed to have deep habits … deep habits NKPC by using the model's optimality conditions to impute time series for unobservable variables. The resulting …