A Model of Rule-of-Thumb Consumers With Nominal Price and Wage Rigidities

Número: 
707
Publicado: 
Clasificación JEL: 
E32, E37, C68
Palabras clave: 
DSGE, Nominal rigidities, rule of thumb consumers

This document presents a dynamic stochastic general equilibrium model with rule of thumb (Non-Ricardian) agents and both nominal price and wage rigidities. The model follows closely that of Galí et al. (2004) and expands it to include a second way form of