1. Shimer, 2005), we need to explore alternative wage determination scenarios. We compare the business-cycle statistics of the baseline model CLG solved with the Nash-bargained wages defined in equation (18). 23 Nash-bargained wages do not change the results with respect to either volatility or persistence. The business-cycle second moments;Finally, since the rigidity of wages to changes in labor productivity have an important role in amplifying technology shocks in labor-market search models (see Hall,2005
2. Firm-specific capital, nominal rigidities and the business cycle;D Altig;Review of Economic Dynamics,2011