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
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