Hey, I was wondering whether in the example of the one-asset HANK model the marginal costs in the Phillips Curve should be specified as $\frac{w_t}{z}$ rather than only $w_t$? If so, then we would have $mc_t = \frac{wt}{z}$ and in steady state: $mc{ss} = \frac{\theta - 1}{\theta}$ and $w{ss} = mc{ss}*z$, correct? Changing this had for me only a small effect anyway, but perhaps for some nevertheless important (whenever $z \ne 1$).
Hey, I was wondering whether in the example of the one-asset HANK model the marginal costs in the Phillips Curve should be specified as $\frac{w_t}{z}$ rather than only $w_t$? If so, then we would have $mc_t = \frac{wt}{z}$ and in steady state: $mc{ss} = \frac{\theta - 1}{\theta}$ and $w{ss} = mc{ss}*z$, correct? Changing this had for me only a small effect anyway, but perhaps for some nevertheless important (whenever $z \ne 1$).