"In this paper, we first construct a dynamic new Keynesian model that incorporates life-cycle behavior a la Gertler (1999), in order to study whether structural shocks to the economy have asymmetric effects on heterogeneous agents, namely workers and retirees. We also examine whether considerat...

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Bibliographic Details

Main Authors:	Fujiwara, Ippei (Author), Teranishi, Yuki (Author)
Format:	Book
Language:	English
Published:	Tokyo IMES 2007
Series:	Discussion paper series / Institute for Monetary and Economic Studies, Bank of Japan 2007,4
Subjects:	Heterogenous Agents; Life-Cycle; New Keynesian Model Gesellschaft Ökonometrisches Modell Monetary policy > Social aspects > Econometric models Population aging > Economic aspects > Econometric models Structural adjustment (Economic policy) > Econometric models
Online Access:	Volltext
Summary:	"In this paper, we first construct a dynamic new Keynesian model that incorporates life-cycle behavior a la Gertler (1999), in order to study whether structural shocks to the economy have asymmetric effects on heterogeneous agents, namely workers and retirees. We also examine whether considerations of life-cycle and demographic structure alter the dynamic properties of the monetary business cycle model, specifically the degree of amplification in impulse responses. According to our simulation results, shocks indeed have asymmetric impacts on different households and the demographic structure does alter the size of responses against shocks by changing the degree of the trade-off between substitution and income effects."--Authors' abstract
Physical Description:	30 S. graph. Darst.