Hinweise zum Einsatz der Google Suche
Personensuchezur unisono Personensuche
Veranstaltungssuchezur unisono Veranstaltungssuche
Katalog plus



Universität Siegen

Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht

Volkswirtschaftliche Diskussionsbeiträge

Michael Gail

Persistency and Money Demand Distortions in a Stochastic DGE Model with Sticky Prices and Capital

This paper considers the implications of adding capital as a factor of production in a stochastic DGE model with sticky prices. Particular attention is given to the role of money demand and to the form of the utility function. I consider cah-in-advance-(CIA) as well as money-in-the-utility-function-(MIU) models, with CRRA and GHH preferences, to evaluate their ability to generate persistence. It is shown that even in a MIU-model with a GHH utility function and a high elasticity of labor supply with respect to the real wage the additional intertemporal substitution channel opened through capital accumulation does have a significant dampening influence on the persistence effects of montary shocks. In a CIA-setup with GHH preferences the model can generate the liquidity effect. A multiplicatively separable CRRA utility function in the MIU-model cannot account for the observed persistent reactions of inflation and output either.


Download paper