TY - JOUR
T1 - MPCS, MPES, AND MULTIPLIERS
T2 - A TRILEMMA FOR NEW KEYNESIAN MODELS
AU - Auclert, Adrien
AU - Bardóczy, Bence
AU - Rognlie, Matthew
N1 - Publisher Copyright:
© 2021 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
PY - 2023/5/9
Y1 - 2023/5/9
N2 - We show that New Keynesian models with frictionless labor supply face a challenge: given standard parameters, they cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), marginal propensities to earn (MPEs), and fiscal multipliers. A HANK model with sticky wages provides a solution to this trilemma.
AB - We show that New Keynesian models with frictionless labor supply face a challenge: given standard parameters, they cannot simultaneously match plausible estimates of marginal propensities to consume (MPCs), marginal propensities to earn (MPEs), and fiscal multipliers. A HANK model with sticky wages provides a solution to this trilemma.
UR - http://www.scopus.com/inward/record.url?scp=85160252488&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85160252488&partnerID=8YFLogxK
U2 - 10.1162/rest_a_01072
DO - 10.1162/rest_a_01072
M3 - Article
AN - SCOPUS:85160252488
SN - 0034-6535
VL - 105
SP - 700
EP - 712
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 3
ER -