Huang, Kevin x.d.; Volkan, Engin; Yazgan, M. ege - In: Vanderbilt University Department of Economics Working Papers (2013), pp. 2-26
We argue that nonhomothetic preferences with habit formation in nondurable and durable consumption can be a driving force behind sectoral comovement in production. We make this point by augmenting a two-sector New Keyesian model a la Barsky, House and Kimball (2007) with these two real features...
