Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19156
Authors: 
Heer, Burkhard
Maußner, Alfred
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper 1692
Abstract: 
In our dynamic optimizing sticky price model, agents are heterogeneous with regard to their age and their productivity. We find that the business cycle dynamics in the OLG model in response to both a technology shock and a monetary shock are similar, but not completely identical to those found in the corresponding representative-agent model. In particular, working hours in the OLG model decrease in response to a positive technological shock, since for young workers the income effect dominates the substitution effect. This is in line with the adverse effect of productivity shocks on employment found in structural vector autoregressions.
Subjects: 
fluctuations
unanticipated inflation
wealth distribution
income distribution
progressive income taxation
Calvo price staggering
JEL: 
E52
E32
D31
D58
E31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.