9,741 research outputs found
Do nominal rigidities matter for the transmission of technology shocks?
A commonly held view is that nominal rigidities are important for the transmission of monetary policy shocks. We argue that they are also important for understanding the dynamic effects of technology shocks, especially on labor hours, wages, and prices. Based on a dynamic general equilibrium framework, our closed-form solutions reveal that a pure sticky-price model predicts correctly that hours decline following a positive technology shock, but fails to generate the observed gradual rise in the real wage and the near-constance of the nominal wage; a pure sticky-wage model does well in generating slow adjustments in the nominal wage, but it does not generate plausible dynamics of hours and the real wage. A model with both types of nominal rigidities is more successful in replicating the empirical evidence about hours, wages and prices. This finding is robust for a wide range of parameter values, including a relatively small Frisch elasticity of hours and a relatively high frequency of price reoptimization that are consistent with microeconomic evidence.
Do Nominal Rigidities Matter for the Transmission of Technology Shocks?
A commonly held view is that nominal rigidities are important for the transmission of monetary policy shocks. We argue that they are also important for understanding the dynamic effects of technology shocks, especially on labor hours, wages, and prices. Based on a dynamic general equilibrium framework, our closed-form solutions reveal that a pure sticky-price model predicts correctly that hours decline following a positive technology shock, but fails to generate the observed gradual rise in the real wage and the near-constance of the nominal wage; a pure sticky-wage model does well in generating slow adjustments in the nominal wage, but it does not generate plausible dynamics of hours and the real wage. A model with both types of nominal rigidities is more successful in replicating the empirical evidence about hours, wages and prices. This finding is robust for a wide range of parameter values, including a relatively small Frisch elasticity of hours and a relatively high frequency of price reoptimization that are consistent with microeconomic evidence.Technology shock, nominal rigidities, monetary policy
Mean-field scenario for the athermal creep dynamics of yield-stress fluids
We develop an elasto-plastic description for the transient dynamics prior to
steady flow of athermally yielding materials. Our mean-field model not only
reproduces the experimentally observed non-linear time dependence of the
shear-rate response to an external shear-stress, but also allows for the
determination of the different physical processes involved in the onset of the
re-acceleration phase after the initial critical slowing down and a distinct
well defined fluidization phase. The evidenced power-law dependence of the
fluidization time on the distance of the applied to an age dependent static
yield stress is not universal but strongly dependent on initial conditions.Comment: 8 pages, 4 figure
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