Showing 1 - 10 of 98
provide step-by-step guidelines for implementing this method in the Matlab-based packages Dynare and Gensys. Our method …
Persistent link: https://www.econbiz.de/10011083357
remains significant, and that inflation dynamics are mainly driven by the forward-looking component. Bayesian estimation of …
Persistent link: https://www.econbiz.de/10005792530
The Paper derives an open economy New-Keynesian Phillips curve. The Phillips curve depends on growth in the domestic economy excess capacity, differential growth between foreign output and domestic output, and on the surprise depreciation of the real exchange rate. The Paper provides new...
Persistent link: https://www.econbiz.de/10005498133
Typically, a small and open economy trades goods at given world prices. Here, we present a model of a very open small economy, where capital and labour are internationally mobile, too. When investing into infrastructure, the economy’s government attracts not only mobile capital but mobile...
Persistent link: https://www.econbiz.de/10005497938
In this paper we develop a stochastic dynamic general equilibrium model of the Greek economy, in the real business cycle modelling tradition. Household preferences depend on private and public consumption and leisure. Government finances its investment, consumption and transfer payments by means...
Persistent link: https://www.econbiz.de/10005661696
We consider a three sector small open economy, with a monopolistic non-traded sector, a competitive traded good sector, and a capital goods sector. In both the consumer good sectors, there are enterprise unions that bargain sequentially over wages and employment as in Manning (1987). This...
Persistent link: https://www.econbiz.de/10005661715
This paper introduces the concept of a steepest ascent tariff reform for a small open economy. By construction, it is locally optimal in that it yields the highest gain in utility of any feasible tariff reform vector of the same length. Accordingly, it provides a convenient benchmark for the...
Persistent link: https://www.econbiz.de/10005662058
We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a tractable canonical system in domestic inflation and the output gap. We employ this framework to analyse the macroeconomic implications of three alternative monetary...
Persistent link: https://www.econbiz.de/10005662120
idiosyncratic shocks. Even when prices are flexible and inflation can costlessly act as a shock absorber to restore fiscal …
Persistent link: https://www.econbiz.de/10005666758
This paper shows how changes in the volatility of the real interest rate at which small open emerging economies borrow have a quantitatively important effect on real variables like output, consumption, investment, and hours worked. To motivate our investigation, we document the strong evidence...
Persistent link: https://www.econbiz.de/10005666783