期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2004
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：This paper investigates the micro mechanisms by which monetary policy affects
and is transmitted through the U.S economy, by developing a unified, dynamic, stochastic,
general equilibrium model that nests two classes of models. The first sticky
prices and the second limited participation. Limited participation is incorporated
by assuming that households’ are faced with quadratic portfolio adjustment costs.
Monetary policy is characterized by a generalized Taylor rule with interest rate
smoothing. The model is calibrated and investigates whether the unified model
performs better in replicating empirical stylized facts, than the models that have
only sticky price or limited participation. The unified model replicates the second
moments of the data better than the other two types of models. It also improves
on the ability of the sticky price model to deliver the hump-shaped response of
output and inflation. Moreover, it also delivers on the ability of the limited participation
model to replicate the fall in profits and wages, after a contractionary
monetary policy.
