MPCs, MPEs, and Multipliers: A Trilemma for New Keynesian Models
نویسندگان
چکیده
Abstract We show that New Keynesian models with frictionless labor supply face a challenge: given standard parameters, they cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), earn (MPEs), and fiscal multipliers. A HANK model sticky wages provides solution this trilemma.
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ژورنال
عنوان ژورنال: The Review of Economics and Statistics
سال: 2023
ISSN: ['0034-6535', '1530-9142']
DOI: https://doi.org/10.1162/rest_a_01072