Does the Timing of the Cash-in-Advance Constraint Matter for Optimal Fiscal and Monetary Policy?
University of Maryland
Cash-in-advance model with cash goods and credit goods, comparing Lucas-Stokey/Chari-Christiano-Kehoe timing versus Svensson timing for optimal fiscal and monetary policy
linear-in-labor production technology with TFP shocks, perfect competition
Table 1
LS/CCK timing with both TFP and government spending shocks
LS/CCK timing is the benchmark model in the Ramsey literature, with full set of shocks