Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67343
Authors: 
Ahrens, Steffen
Year of Publication: 
2012
Series/Report no.: 
Kiel Working Paper 1802
Abstract: 
In this paper we incorporate the two most prominent approaches of inequality aversion, i.e. Fehr and Schmidt (1999) and Bolton and Ockenfels (2000) into an otherwise standard New Keynesian macro model and compare them with respect to their influence on the long-run effectiveness of monetary policy. We find that the choice for Fehr and Schmidt or Bolton and Ockenfels like preferences is of importance only for the quantitative - but not the qualitative - effectiveness of monetary policy in the long-run.
Subjects: 
price stickiness
long-run Phillips curve
inequality aversion
JEL: 
D03
E20
E31
E50
Document Type: 
Working Paper

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