Université de Lausanne
Ecole des HEC
Département d'économétrie et d'économie politique

SEMINAIRE BROWNBAG

Wednesday September 19, 2007, 12:15
Internef, room 123

Francesco FURLANETTO
(CREI, Barcelona and Norges Bank, Oslo)

Rule-of-thumb Consumers and the Business Cycle

Abstract
In this paper we study the transmission mechanism of productivity shocks in a model with rule-of-thumb consumers. In the literature, this financial friction has been studied only with reference to fiscal shocks. As a consistency exercise we show that the presence of rule-of-thumb consumers is very helpful also in accounting for recent influential empirical evidence on productivity shocks. Rule-of-thumb agents, together with nominal and real rigidities, play an important role in explaining the negative reponse of hours and the zero reponses of output and consumption after a productivity shock.

Web site of the seminar (with paper online): http://www.hec.unil.ch/deep/evenements-english/e-sem-all-2007-08.htm

eptembre 2007, 12h15
Internef, salle 123

Francesco FURLANETTO
(CREI, Barcelona and Norges Bank, Oslo)

Rule-of-thumb Consumers
and the Business Cycle

Abstract

In this paper we study the transmission mechanism of productivity shocks in a model with rule-of-thumb consumers. In the literature, this financial friction has been studied only with reference to fiscal shocks. As a consistency exercise we show that the presence of rule-of-thumb consumers is very helpful also in accounting for recent influential empirical evidence on productivity shocks. Rule-of-thumb agents, together with nominal and real rigidities, play an important role in explaining the negative reponse of hours and the zero reponses of output and consumption after a productivity shock.

Site web du séminaire (avec texte en ligne): http://www.hec.unil.ch/deep/evenements/Brownbag2007-08.htm