FrançaisEnglish

Érudit | Dépôt de documents >
CIRPÉE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi >
Cahiers de recherche du CIRPÉE >

Please use this identifier to cite or link to this item:

https://depot.erudit.org/id/002773dd

Title: Durable Goods, Inter-Sectoral Linkages and Monetary Policy
Authors: Bouakez, Hafedh
Cardia, Emanuela
Ruge-Murcia, Francisco J.
Keywords: Durability
input-output interactions
roundabout production
sectoral comovement
monetary policy
Issue Date: 2008-09
Series/Report no.: Cahiers du CIRPÉE;08-21
Abstract: Barsky, House and Kimball (2007) show that introducing durable goods into a sticky-price model leads to negative sectoral comovements of production following a monetary policy shock and, under certain conditions, to aggregate neutrality. These results appear to undermine sticky-price models. In this paper, we show that these results are not robust to two prominent and realistic features of the data, namely input-output interactions and limited mobility of productive inputs. When extended to allow for both features, the sticky-price model with durable goods delivers implications in line with VAR evidence on the effects of monetary policy shocks.
URI: http://132.203.59.36/CIRPEE/cahierscirpee/2008/files/CIRPEE08-21.pdf
https://depot.erudit.org/id/002773dd
Appears in Collections:Cahiers de recherche du CIRPÉE

Files in This Item:

CIRPEE08-21.pdf, (Adobe PDF ; 502,73 kB)

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

 

About Érudit | Subscriptions | RSS | Terms of Use | Contact us |

Consortium Érudit ©  2014