publication . Article . Other literature type . Research . 2007

Rule-of-thumb consumers, productivity, and hours

Furlanetto, Francesco; Seneca, Martin;
Open Access
  • Published: 01 Jan 2007 Journal: The Scandinavian Journal of Economics, volume 114, pages 658-679 (issn: 0347-0520, Copyright policy)
  • Publisher: Wiley
  • Country: Norway
Abstract
In this paper we study the transmission mechanisms 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. We show that the presence of rule-of-thumb consumers is also very helpful in accounting for recent empirical evidence on productivity shocks. Rule-of-thumb agents, together with nominal and real rigidities, play an important role in reproducing the negative response of hours and the delayed responses of output and consumption after a productivity shock.
Subjects
Medical Subject Headings: body regionsmusculoskeletal diseases
free text keywords: E32, rule-of-thumb consumers, productivity shocks, nominal rigidities, real rigidities, Technischer Fortschritt, Schock, Real Business Cycle, Konsumentenverhalten, Produktivität, Arbeitszeit, Neukeynesianische Makroökonomik, :Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 [VDP], Economics and Econometrics, Empirical evidence, Negative response, Economics, Rule of thumb, Labour economics, ddc:330, jel:E32
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