responds positively to surprises in labor productivity growth. However, we do not reject the hypothesis that the real long …

We examine the role of money, allowing for three competing environments: the New Keynesian model with separable utility … and static money demand; a non-separable utility variant with habit formation; and a version with adjustment costs for … holding real balances. The last two variants imply forward-looking behavior of real money balances, as it is optimal for …

rather small fluctuations in real interest rates. Here, however, we present two models of the real business cycle variety in … which real rate fluctuations are of similar magnitude as in the data, while simultaneously matching salient business cycle … plan investment and time to build capital. …

"This paper studies strategic asset allocation and consumption choice in the presence of regime switching in asset … the longer their investment horizon, while the optimal allocation to stocks declines as a function of the investment … returns from the dividend yield give rise to a non-monotonic relationship between the investment horizon and the demand for …