Contract length heterogeneity and the persistence of monetary shocks in a dynamic generalized Taylor economy

B-Tier
Journal: European Economic Review
Year: 2011
Volume: 55
Issue: 2
Pages: 280-292

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop the generalized Taylor economy (GTE) in which there are many sectors with overlapping contracts of different lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of contract lengths, we find that the corresponding GTE tracks the U.S. data well. When we choose a GTE with the same distribution of completed contract lengths as the Calvo, the economies behave in a similar manner.

Technical Details

RePEc Handle
repec:eee:eecrev:v:55:y:2011:i:2:p:280-292
Journal Field
General
Author Count
2
Added to Database
2026-01-25