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This paper shows that a modified real business cycle (RBC) model, one that includes home production and fiscal spending shocks, can solve one of the RBC puzzles and generates zero correlation between wages and hours. In addition, the micro-founded model presented here provides a sound...
Persistent link: https://www.econbiz.de/10011487475
This paper shows that a modified real business cycle (RBC) model, one that includes home production and fiscal spending shocks, can solve one of the RBC puzzles and generates zero correlation between wages and hours. In addition, the micro-founded model presented here provides a sound...
Persistent link: https://www.econbiz.de/10011500192
Persistent link: https://www.econbiz.de/10009356327
.r.t. alternative assumptions about the size and persistence of the initial shock (severity of the recession), the assumed power of the …
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