Assessing the Empirical Relevance of Labour Frictions to Business Cycle Fluctuations
在动态随机一般均衡模型中引入三种劳动力摩擦（不可分劳动、预定就业和调整成本），发现模型能更好拟合数据，且劳动力摩擦显著影响全要素生产率冲击、财政政策和货币政策的效果。
Abstract This paper describes a dynamic stochastic general equilibrium model augmented with labour frictions, namely: indivisible labour, predetermined employment and adjustment costs. This improves the fit to the data as shown by a higher log marginal likelihood and closer match to key business cycle statistics. The labour frictions introduced are relevant for model dynamics and economic policy: the effect of total factor productivity shocks on most macroeconomic variables is substantially mitigated; fiscal policy leads to a greater crowding out of private sector activity and monetary policy has a lower impact on output. Labour frictions also provide a better match to impulse response functions from vector autoregressive models.