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- W2921702012 abstract "We theoretically explore long-run stagnation at the zero lower bound in a representative agent framework. We analytically compare expectations-driven stagnation to a secular stagnation episode and find contrasting policy implications for changes in government spending, supply shocks and neo-Fisherian policies. On the other hand, a minimum wage policy is expansionary and robust to the source of stagnation. Using Bayesian methods, we estimate a DSGE model that can accommodate two competing hypotheses of long-run stagnation in Japan. We document that equilibrium selection under indeterminacy matters in accounting for model fit." @default.
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- W2921702012 date "2018-01-01" @default.
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- W2921702012 title "Understanding Persistent Stagnation" @default.
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- W2921702012 doi "https://doi.org/10.2139/ssrn.3247350" @default.
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