Kim, Jinill; Ruge-Murcia, Francisco J. - In: Journal of Monetary Economics 56 (2009) 3, pp. 365-377
Tobin's proposition that inflation "greases" the wheels of the labor market is studied using a simple dynamic stochastic general equilibrium model with asymmetric wage adjustment costs. The simulated method of moments is used to estimate the nonlinear model based on its second-order...