An Economical Business-Cycle Model
---- Acknowledgements -----
We thank Regis Barnichon, Francesco Caselli, Giancarlo Corsetti, Wouter den Haan, Emmanuel Farhi, Etienne Lehmann, Kevin Sheedy, Carl Walsh, and numerous seminar and conference participants for helpful discussions and comments. This work was supported by the Center for Equitable Growth at the University of California Berkeley, the British Academy, the Economic and Social Research Council [grant number ES/K008641/1], the Banque de France foundation, and the Institute for New Economic Thinking. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.