Arbeitspapier
Heterogeneous households in a sticky-price model
This 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.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2010-01
- Klassifikation
-
Wirtschaft
Model Construction and Estimation
General Aggregative Models: Neoclassical
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Demand and Supply of Labor: General
- Thema
-
heterogeneity
price stickiness
multiple sectors
DSGE model
Bayesian estimation
real rigidities
Dynamisches Gleichgewicht
Modellierung
Preisrigidität
Privater Haushalt
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lee, Jae Won
- Ereignis
-
Veröffentlichung
- (wer)
-
Rutgers University, Department of Economics
- (wo)
-
New Brunswick, NJ
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Lee, Jae Won
- Rutgers University, Department of Economics
Entstanden
- 2009
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