Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/59464
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dc.contributor.authorLee, Jae Wonen_US
dc.date.accessioned2012-06-25T11:57:16Z-
dc.date.available2012-06-25T11:57:16Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/59464-
dc.description.abstractThis paper introduces heterogeneous households into an otherwise standard sticky-price model with industry-specific labor markets. Households differ in labor incomes and asset markets are incomplete. I show that household heterogeneity affects equilibrium dynamics nontrivially by amplifying price stickiness endogenously through wealth effects on labor supply. To quantify the importance of household heterogeneity in amplifying stickiness, I estimate and compare representative and heterogeneous household models. The quantitative exercise shows the heterogenous household model performs better than its representative counterpart in accounting for aggregate and sectoral dynamics in the U.S., while being more consistent with empirical evidence on nominal rigidity at the aggregate and sectoral levels, thanks to the stickiness endogenously generated by the model.en_US
dc.language.isoengen_US
dc.publisher|aDep. of Economics, Rutgers, the State Univ. of New Jersey |cNew Brunswick, NJen_US
dc.relation.ispartofseries|aWorking Papers, Department of Economics, Rutgers, the State University of New Jersey |x2010,01en_US
dc.subject.jelC51en_US
dc.subject.jelE13en_US
dc.subject.jelE31en_US
dc.subject.jelE32en_US
dc.subject.jelE44en_US
dc.subject.jelJ20en_US
dc.subject.ddc330en_US
dc.subject.keywordheterogeneityen_US
dc.subject.keywordprice stickinessen_US
dc.subject.keywordmultiple sectorsen_US
dc.subject.keywordDSGE modelen_US
dc.subject.keywordBayesian estimationen_US
dc.subject.keywordreal rigiditiesen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.subject.stwModellierungen_US
dc.subject.stwPreisrigidit├Ąten_US
dc.subject.stwPrivater Haushalten_US
dc.subject.stwTheorieen_US
dc.titleHeterogeneous households in a sticky-price modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn635881454en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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