|
| |
| Patrick Fève |
| |
| ''Technology Shock and Employment under Catching up with the Joneses'' |
| ( 2004, Vol. 5 No.3 ) |
| |
| |
| Following a positive technology shock, a flexible price monetary model with catching up with the Joneses utility function can easily generate a negative and persistent decline in employment. When the effect of relative consumption is large, the model also produces a small short run response of output to a technology shock. |
| |
| |
| Keywords: |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
| |
| Manuscript Received : Feb 05 2004 | | Manuscript Accepted : Feb 07 2004 |
|
