Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83917
Authors: 
Dixon, Huw
Kara, Engin
Year of Publication: 
2007
Series/Report no.: 
Cardiff Economics Working Papers E2007/1
Abstract: 
We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of di§erent lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of contract lengths, we Önd that the corresponding GTE tracks the US data well. When we choose a GTE with the same distribution of completed contract lengths as the Calvo, the economies behave in a similar manner.
Subjects: 
Persistence
Taylor contract
Calvo
JEL: 
E50
E24
E32
E52
Document Type: 
Working Paper

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