Simple unemployment model and policy functions

General DSGE Modeling
1

Dear Pfeifer

  1. I am looking for a paper in the literature that measures the elasticity of the unemployment rate to a change in the monetary policy rate. Do you know of any small structural or semi-structural model where I can study this and apply it to the particular case of my country?

  2. I would like to know what is the appropriate way to interpret the coefficients of the policy functions, I attach a small example. Are they interpreted in the same way as the OLS estimators or is it different?

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Thanks.

2
  1. See e.g.
    Gertler et al. 2008 - An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage Bargaining at https://www.jstor.org/stable/25483468
  2. In contrast to OLS, the policy functions show causal effects. Apart from that, the interpretations is the same.