Working Paper: NBER ID: w17071
Authors: Alejandro Justiniano; Giorgio E. Primiceri; Andrea Tambalotti
Abstract: Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers' preferences or market power.
Keywords: inflation; output stabilization; DSGE model
JEL Codes: E30; E52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| stabilization policies (E63) | output stabilization (E63) |
| stabilization policies (E63) | inflation stabilization (E31) |
| inefficient output fluctuations (E32) | inflation stability (E31) |
| wage markup shocks (J39) | overall economic stability (E66) |
| labor supply shocks (J20) | potential output (E23) |
| labor supply shocks (J20) | optimal output (H21) |