Boscá, José Emilio; Ferri, Javier; Doménech, Rafa - Institut d'Economia Internacional (IEI), Universitat Jaume I - 2009
This paper analyses the effects of introducing typical Keynesian features, namely rule-of-thumb consumers and consumption habits, into a standard labour market search model. It is a well-known fact that labour market matching with Nash-wage bargaining improves the ability of the standard real...