@techreport{Paustian2005role,
abstract = {What is the role of contracting schemes for the welfare costs of nominal rigidities over
the business cycle? We examine 4 different modeling schemes of nominal rigidities that
all have the same average duration of contracts. We find that Calvo (1983) wage and price
contracts may deliver welfare costs that are 3-4 times higher than Taylor (1980) contracts.
However, that result is sensitive to the monetary policy rule. We discuss the implications
of modeling capital mobility and of adopting the Mankiw and Reis (2002) sticky information
scheme for the welfare costs of nominal rigidities.},
author = {Matthias Paustian},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E32; E52; 330; welfare; Calvo; Taylor; sticky information; costs of nominal rigidities; Geldpolitik; Lohnrigidit\"{a}t; Lohnbildung; Wohlfahrtseffekt; Theorie},
language = {eng},
number = {2005,22},
title = {The role of contracting schemes for the welfare costs of nominal rigidities over the business cycle},
type = {Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank},
url = {http://hdl.handle.net/10419/19607},
year = {2005}
}
