Money in the Production Function : A New Keynesian DSGE Perspective
type: Dataset
description: This paper proposes a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model where real money balances enter the production function. By using a Bayesian analysis, our model shows that money is not an omitted input to the production process and rejects the decreasing returns to scale hypothesis. Our simulations suggest that money plays a negligible role in the dynamics of output and inflation, despite its inclusion in the production function. In addition, we introduce the flexible-price real money balances concept.
landing page: https://essec.hal.science/hal-00795547
keyword: bayesian-estimation
keyword: dsge
keyword: infoeu-reposemanticspreprint
keyword: jel-e---macroeconomics-and-monetary-economicsee2---consumption-saving-production-investment-l
keyword: jel-e---macroeconomics-and-monetary-economicsee3---prices-business-fluctuations-and-cyclesee3
keyword: jel-e---macroeconomics-and-monetary-economicsee5---monetary-policy-central-banking-and-the-supp
keyword: money-in-the-production-function
keyword: preprints-working-papers-
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
issued: 2026-05-13T22:44:06.820687
modified: 2026-05-13T22:44:06.820694
language: en
contact point: Organization
  fn: CCSD

test_moissonnage_selune
type: Agent

Money in the Production Function : A New Keynesian DSGE Perspective
type: Distribution
format: HTML
access URL: https://essec.hal.science/hal-00795547
issued: 2026-05-13T22:44:06.827774
modified: 2026-05-13T22:44:06.761476