Casares, Miguel; Moreno, Antonio; Vázquez, Jesús - Departamento de Economía - Universidad Pública de Navarra - 2009
Erceg, Henderson and Levin (2000, Journal of Monetary Economics) introduce sticky wages in a New-Keynesian general-equilibrium model. Alternatively, it is shown here how wage stickiness may bring unemployment fluctuations into a New-Keynesian model. Using Bayesian econometric techniques, both...