Organizational Learning and Optimal Fiscal and Monetary Policy
Saint Mary's University
Standard cash-credit good monetary Ramsey model augmented with Rotemberg sticky prices and organizational learning-by-doing (LBD) mechanism in production technology where firms accumulate organizational capital through past production
intermediate firms: monopolistic competition with Dixit-Stiglitz, learning-by-doing organizational capital accumulation; final firms: perfect competition with CES aggregation
Table 2 p.14
Flexible price, no LBD - steady state