• Title of article

    Unemployment and the smoothness of consumption in business cycle models

  • Author/Authors

    Liam Graham، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2003
  • Pages
    5
  • From page
    263
  • To page
    267
  • Abstract
    The permanent income hypothesis means that dynamic general equilibrium models fail to produce a hump-shaped response for consumption even if they do so for other variables. This article shows that the introduction of non-separable preferences and unemployment can solve this problem.
  • Keywords
    Business cycles , Non-separable preferences , Consumption smoothing , unemployment
  • Journal title
    Economics Letters
  • Serial Year
    2003
  • Journal title
    Economics Letters
  • Record number

    435175