@techreport{Gail2004Sticky,
abstract = {In this paper a stochastic dynamic general equilibrium (DGE) model
with capital accumulation is augmented by sticky wages. Wages are
set in a staggered way as in Taylor (1980) implying that the optimal
wage will be set for two periods. Prices are also sticky since there are
adjustments cost of prices as in Rotemberg (1982). It is confirmed that
wage staggering has a higher potential to generate persistent output
responses to a money growth shock. Interestingly, adjustment costs of
capital contribute strongly to output persistence. If it is not costly to
adjust capital there is no output persistence at all. Price adjustment
costs can strengthen the effects of money growth shocks on output in
the presence of costly capital adjustment.},
author = {Michael Gail},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E52; 330; Monetary Policy; New Neoclassical Synthesis; Sticky Wages; Sticky Prices; Persistence; Real Business Cycle; Geldpolitik; Real Business Cycle; Dynamisches Gleichgewicht; Neue Neoklassische Synthese; Lohnrigidit\"{a}t; Preisrigidit\"{a}t; Theorie},
language = {eng},
number = {114},
title = {Sticky Wages in a Stochastic DGE Model of the Business Cycle},
type = {Volkswirtschaftliche Diskussionsbeitr\"{a}ge / Universit\"{a}t-Gesamthochschule-Siegen, Fachbereich Wirtschaftswissenschaften},
url = {http://hdl.handle.net/10419/23293},
year = {2004}
}
