Nominal Wage Rigidities in a New Keynesian Model with Frictional Unemployment

Vincent Bodart, Grégory de Walque, Olivier Pierrard, Henri Sneessens and Raf Wouters

No 2528, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we propose a search and matching model with nominal stickiness à la Calvo in the wage bargaining. We analyze the properties of the model, first, in the context of a typical real business cycle model driven by stochastic productivity shocks and second, in a fully specified monetary DSGE model with various real and nominal rigidities and multiple shocks. The model generates realistic statistics for the important labor market variables.

Keywords: DSGE; search and matching; nominal wage rigidity; monetary policy (search for similar items in EconPapers)
JEL-codes: E31 E32 E52 J64 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2006-12
New Economics Papers: this item is included in nep-cba, nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Related works:
Working Paper: Nominal wage rigidities in a new Keynesian model with frictional unemployment (2006)
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