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has been cited by the following article:

• TITLE: The New Open Economy Macroeconomics of Working Habits

  AUTHORS: Yunqing Wang, Qianwen Liu, Bayi Guan, Xinyu Sui

  KEYWORDS: Working Habits, New Open Economy Macroeconomics, Monetary and Fiscal Policy

  JOURNAL NAME: Theoretical Economics Letters, Vol.5 No.1, February 15, 2015

  ABSTRACT: This paper develops a new open economy macroeconomics model by allowing for habit formation in labor supply. The main findings of our analysis are that 1) an increase in the importance of working habits strengthens the effect of monetary policy shocks on relative consumption, weakens on change in the equilibrium exchange rate, and 2) an increase in the importance of working habits strengthens the response of relative consumption and the equilibrium exchange rate change to fiscal policy shocks.