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- W3123892014 abstract "This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environmental policy regime put in place; (iii) the optimal environmental policy response to shocks is strongly influenced by the degree to which prices adjust and by the monetary policy reaction." @default.
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- W3123892014 date "2015-01-01" @default.
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- W3123892014 title "Environmental policy and macroeconomic dynamics in a new Keynesian model" @default.
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- W3123892014 doi "https://doi.org/10.1016/j.jeem.2014.10.002" @default.
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