Arbeitspapier
Quadratic labor adjustment costs, business cycle dynamics and optimal monetary policy
We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this increases output persistence in a similar vein as other models of labor market frictions. Furthermore, it is demonstrated that quadratic labor adjustment costs imply a trade off between stabilizing output and stabilizing inflation.
- Language
-
Englisch
- Bibliographic citation
-
Series: Kiel Working Paper ; No. 1453 [rev.]
- Classification
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Monetary Policy
Labor Demand
- Subject
-
Monetary Persistence
Labor Adjustment Costs
Optimal Monetary Policy
Preisrigidität
Arbeitsmarkt
Anpassungskosten
Neoklassische Synthese
Konjunkturtheorie
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Lechthaler, Wolfgang
Snower, Dennis J.
- Event
-
Veröffentlichung
- (who)
-
Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lechthaler, Wolfgang
- Snower, Dennis J.
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2011
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