LEADER 07087oam 22014294 450 001 9910826834003321 005 20200520144314.0 010 $a1-4755-4973-3 010 $a1-4755-7794-X 035 $a(CKB)2670000000278943 035 $a(EBL)1606946 035 $a(SSID)ssj0000938567 035 $a(PQKBManifestationID)11583085 035 $a(PQKBTitleCode)TC0000938567 035 $a(PQKBWorkID)10920879 035 $a(PQKB)10972937 035 $a(MiAaPQ)EBC1606946 035 $a(Au-PeEL)EBL1606946 035 $a(CaPaEBR)ebr10627164 035 $a(OCoLC)806353228 035 $a(IMF)WPIEE2012206 035 $a(IMF)WPIEA2012206 035 $a(EXLCZ)992670000000278943 100 $a20020129d2012 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aHousehold Production, Services and Monetary Policy /$fConstant Lonkeng Ngouana 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2012. 215 $a1 online resource (41 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/12/206 300 $aDescription based upon print version of record. 311 $a1-4755-2546-X 311 $a1-4755-0556-6 320 $aIncludes bibliographical references. 327 $aCover; Contents; I. Introduction; A. Related Literature; II. Empirical Evidence; A. Services versus Nondurables: A Sectoral VAR; B. The Importance of Household Production; 1. Home hours worked; Figures; 1. Estimated responses of real sectoral consumption to a monetary policy tightening.; Tables; 1. Time devoted to household production in the U.S. (2003 annual average); 2. Households and the production of services; C. Household and Market Production Over the Business Cycle; 1. Fluctuations of home and market hours worked; 2. Home and market hours worked (HP-de-trended series) 327 $a2. Substitutability between home and market services over the business cycle2. Child care expenses by families with employed mothers, as percentage of monthly income, 1991-2005.; III. The Model Economy; A. The Economic Environment; 3. Expenditures on food at home and food away from home (HP-de-trended series); B. The Representative Household; C. Final Goods Producers; D. Intermediate Goods producers; E. Sectoral and Aggregate New Keynesian Phillips Curves; 4. Contribution of the output gap term and the extra term to inflation dynamics; F. Monetary Policy; G. Aggregation 327 $aIV. Calibration and ResultsA. Parameter Values; B. Simulation Results; 3. Parameter values; V. Conclusion; References; Appendices; A. Proof of Proposition 1; B. Proof of Corollary 1; C. Reduced Set of Equations for the Linearized Model; D. Dynamic Response of Macroeconomic Variables to an Expansionary Monetary Shock; 5. Responses of real sectoral consumption to a 1% interest-rate cut.; 6. Responses of sectoral inflation and real aggregates to a 1% interest-rate cut. 330 3 $aA distinctive feature of market-provided services is that some of them have close substitutes at home. Households may therefore switch between consuming home and market services in response to changes in the real wage - the opportunity cost of working at home - and changes in the price of market services. In order to analyze and quantify the implications of this trade-off for monetary policy, I embed a household sector into an otherwise standard sticky price DSGE model, which I calibrate to the U.S. economy. The results of the model are twofold. At the sectoral level, household production augments the service sector's New Keynesian Phillips curve with a sizable extra component that co-moves negatively with the output gap term, lowering the incentive of service sector firms to change their prices. This mechanism endogenously amplifies the real effects of a monetary shock in that sector, unlike in the nondurable goods sector for which households cannot manufacture substitutes at home. At the aggregate level, household production also implies more sluggish prices and a stronger response of real macroeconomic variables to a monetary shock. Some empirical support for this theory is provided. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2012/206 606 $aService industries$xManagement 606 $aMonetary policy 606 $aBusiness Fluctuations$2imf 606 $aConsumption$2imf 606 $aCycles$2imf 606 $aDeflation$2imf 606 $aEconomic sectors$2imf 606 $aEconomic theory$2imf 606 $aEconomics$2imf 606 $aGeneral Aggregative Models: Keynes$2imf 606 $aHousehold Production and Intrahousehold Allocation$2imf 606 $aIncome economics$2imf 606 $aIndustries: Service$2imf 606 $aIndustry Studies: Services: General$2imf 606 $aInflation$2imf 606 $aKeynesian$2imf 606 $aLabor economics$2imf 606 $aLabor Economics: General$2imf 606 $aLabor$2imf 606 $aLabour$2imf 606 $aMacroeconomics$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aMacroeconomics: Production$2imf 606 $aNational accounts$2imf 606 $aOutput gap$2imf 606 $aPost-Keynesian$2imf 606 $aPrice Level$2imf 606 $aPrices$2imf 606 $aProduction and Operations Management$2imf 606 $aProduction$2imf 606 $aSaving$2imf 606 $aService industries$2imf 606 $aServices sector$2imf 606 $aSticky prices$2imf 606 $aWealth$2imf 607 $aUnited States$2imf 615 0$aService industries$xManagement. 615 0$aMonetary policy. 615 7$aBusiness Fluctuations 615 7$aConsumption 615 7$aCycles 615 7$aDeflation 615 7$aEconomic sectors 615 7$aEconomic theory 615 7$aEconomics 615 7$aGeneral Aggregative Models: Keynes 615 7$aHousehold Production and Intrahousehold Allocation 615 7$aIncome economics 615 7$aIndustries: Service 615 7$aIndustry Studies: Services: General 615 7$aInflation 615 7$aKeynesian 615 7$aLabor economics 615 7$aLabor Economics: General 615 7$aLabor 615 7$aLabour 615 7$aMacroeconomics 615 7$aMacroeconomics: Consumption 615 7$aMacroeconomics: Production 615 7$aNational accounts 615 7$aOutput gap 615 7$aPost-Keynesian 615 7$aPrice Level 615 7$aPrices 615 7$aProduction and Operations Management 615 7$aProduction 615 7$aSaving 615 7$aService industries 615 7$aServices sector 615 7$aSticky prices 615 7$aWealth 676 $a332.1;332.152 700 $aLonkeng Ngouana$b Constant$01615805 801 0$bDcWaIMF 906 $aBOOK 912 $a9910826834003321 996 $aHousehold Production, Services and Monetary Policy$93946175 997 $aUNINA