%0 Unpublished work %T Money in the Production Function : A New Keynesian DSGE Perspective %+ Centre d'économie de la Sorbonne (CES) %+ PhD Program %A Benchimol, Jonathan %Z ESSEC Working paper. Document de Recherche ESSEC / Centre de recherche de l'ESSEC. ISSN : 1291-9616. WP 1304 %8 2011-12-08 %D 2011 %K Bayesian estimation %K Money in the production function %K DSGE %K Bayesian estimation. %Z Humanities and Social Sciences/Economics and FinancePreprints, Working Papers, ... %X 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. %G English %2 https://essec.hal.science/hal-00795547/document %2 https://essec.hal.science/hal-00795547/file/WP1304.pdf %L hal-00795547 %U https://essec.hal.science/hal-00795547 %~ SHS %~ UNIV-PARIS1 %~ ESSEC %~ CNRS %~ CES %~ AO-ECONOMIE %~ ESSEC-WP