Rigidités salariales, effort de travail variable et Fluctuations

In this paper, we try to explain the fluctuations of the output and the contribution of the shocks to the Solow residual by relaxing the labor retention hypothesis. With effort and work hours becoming variable, monetary shock in the model without nominal rigidity does not generate significant real effects on the macroeconomic variables. However, with wage contracts, the model generates a strong persistence of the output growth rate and the Solow residual becomes endogenous. The monetary shock accounts for almost 30% of Solow residual variations when there is wage rigidity