@inproceedings{DiPace2012Labour,
abstract = {The standard two-sector monetary business cycle model suffers from an important deficiency.
Since durable good prices are more flexible than non-durable good prices, optimising
households build up the stock of durable goods at low cost after a monetary contraction.
Consequently, sectoral outputs move in opposite directions. This paper finds that labour
market frictions help to understand the so-called sectoral \textquotedblleft{}comovement puzzle\textquotedblright{}. Our benchmark
model with staggered Right-to-Manage wage bargaining closely matches the empirical
elasticities of output, employment and hours per worker across sectors. The model with
Nash bargaining, in contrast, predicts that firms adjust employment exclusively along the
extensive margin.},
author = {Federico Di Pace and Matthias S. Hertweck},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E21; E23; E31; E52; 330; durable production; labour market frictions; sectoral comovement; monetary policy},
language = {eng},
number = {E14-V2},
publisher = {ZBW - Deutsche Zentralbibliothek f\"{u}r Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft},
series = {Beitr\"{a}ge zur Jahrestagung des Vereins f\"{u}r Socialpolitik 2012: Neue Wege und Herausforderungen f\"{u}r den Arbeitsmarkt des 21. Jahrhunderts - Session: Monetary Policy and Financial Markets},
title = {Labour Market Frictions, Monetary Policy, and Durable Goods},
url = {http://hdl.handle.net/10419/62052},
year = {2012}
}
