Optimal Fiscal and Monetary Policy in a Medium-Scale Macroeconomic Model
Duke University, CEPR, and NBER; Duke University and NBER
Medium-scale DSGE model with sticky prices (Calvo), sticky wages (Calvo with indexation), money demand by households (transaction costs), cash-in-advance constraint on firm wage bill, investment adjustment costs, variable capacity utilization, 
intermediate firms: monopolistic competition with Calvo pricing; final goods: perfect competition with CES aggregation
Table 6.4 Panel B p.403
Ramsey dynamics with sticky prices (α=0.6) and flexible wages (ξ=0), baseline transfers