Labour Market Frictions, Monetary Policy and Durable Goods

摘要: This paper provides a quantitative answer to the ‘sectoral comovement puzzle’. We extend two-sector New Keynesian model with flexible durable good prices and sticky non-durable by:(i) labour search matching frictions (ii) internal habit formation in consumption. Search generate increase persistence of sectoral outputs, whereas helps appropriately distribute impact given shock over two sectors. As result, our estimated closely replicates amplitude curvature empirical impulse responses both