Casares, Miguel; Moreno, Antonio; Vázquez, Jesús - In: Journal of Macroeconomics 40 (2014) C, pp. 338-359
Wage stickiness is incorporated to a New-Keynesian model with variable capital to drive endogenous unemployment fluctuations defined as the log difference between aggregate labor supply and aggregate labor demand. We estimated such model using Bayesian econometric techniques and quarterly US...