Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Feng Dong and Yi Wen introduce money into the Long and Plosser multi-sector real business cycle model. Money exists as a liquid asset that allows households to respond to idiosyncratic preference shocks. Despite the resulting heterogeneity in consumption, a constant marginal utility of leisure implies that households eliminated differences in their wealth each period. I argue that this framework implies excessive consumption volatility at the household level.