Furlanetto, Francesco; Seneca, Martin - In: Topics in Macroeconomics 9 (2009) 1, pp. 1781-1781
In this paper we show that results on the effects of fiscal shocks in Galí, López-Salido and Vallés (2007) rely on a high degree of price stickiness and a large percentage of financially constrained agents. Real rigidities in the form of habit persistence, fixed firm-specific capital and...