Similar Search Results

Temporary Shocks and Unavoidable Transitions to a High-Unemployment Regime

Den Haan, Wouter - C.E.P.R. Discussion Papers - 2003

This Paper develops a model with multiple steady states (low tax and low unemployment versus high tax and high unemployment) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large temporary shocks initiate unavoidable transitions from one steady state to another....

Persistent link: https://www.econbiz.de/10005656314

The Structure of Simple 'New Economic Geography' Models

Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2004

This paper shows that the mathematical structure of the most widely used New Economic Geography models is the same, irrespective of the underlying agglomeration mechanism assumed (factor migration, input-output linkages, endogenous capital accumulation). This enables us to provide analytical...

Persistent link: https://www.econbiz.de/10005114389

Incomplete-Market Equilibria Solved Recursively on an Event Tree

Dumas, Bernard J; Lyasoff, Andrew - C.E.P.R. Discussion Papers - 2009

We develop a method that allows one to compute incomplete-market equilibria routinely for Markovian equilibria (when they exist). The main difficulty to be overcome arises from the set of state variables. There are, of course, exogenous state variables driving the economy but, in an incomplete...

Persistent link: https://www.econbiz.de/10005124234

Optimal Target Criteria for Stabilization Policy

Giannoni, Marc; Woodford, Michael - C.E.P.R. Discussion Papers - 2010

description of the state of the world. We illustrate the application of the method to a nonlinear DSGE model with staggered price …

Persistent link: https://www.econbiz.de/10008468673

Complementarities and Games: New Developments

Vives, Xavier - C.E.P.R. Discussion Papers - 2004

The theory of monotone comparative statics and supermodular games is presented as the appropriate tool to model complementarities. The approach, which has not yet been fully incorporated into the standard toolbox of researchers, makes the analysis intuitive and simple, helps in deriving new...

Persistent link: https://www.econbiz.de/10005123543

A Theory of Regular Markov Perfect Equilibria in Dynamic Stochastic Games: Genericity, Stability, and Purification

Doraszelski, Ulrich; Escobar, Juan - C.E.P.R. Discussion Papers - 2008

This paper develops a theory of regular Markov perfect equilibria in dynamic stochastic games. We show that almost all dynamic stochastic games have a finite number of locally isolated Markov perfect equilibria that are all regular. These equilibria are essential and strongly stable. Moreover,...

Persistent link: https://www.econbiz.de/10005497794

When Can Central Banks Anchor Expectations? Policy communication and controllability

Acocella, Nicola; Di Bartolomeo, Giovanni; Hughes … - C.E.P.R. Discussion Papers - 2008

Rational expectations are often used as a strong argument against policy activism, as they may undermine or neutralize the policymaker’s actions. Although this sometimes happens, rational expectations do not always imply policy invariance or ineffectiveness. In fact, in certain circumstances...

Persistent link: https://www.econbiz.de/10005661866

The 'Puzzles' Methodology: en route to Indirect Inference?

Le, Vo Phuong Mai; Minford, Patrick; Wickens, Michael R. - C.E.P.R. Discussion Papers - 2009

We review the methods used in many papers to evaluate DSGE models by comparing their simulated moments with data …

Persistent link: https://www.econbiz.de/10008496453

How much nominal rigidity is there in the US Economy? Testing a New Keynesian DSGE model using indirect inference

Le, Vo Phuong Mai; Minford, Patrick; Wickens, Michael R. - C.E.P.R. Discussion Papers - 2009

We evaluate the Smets-Wouters model of the US using indirect inference with a VAR representation of the main US data series. We find that the original New Keynesian SW model is on the margin of acceptance when SW's own estimates of the variances and time-series behaviour of the structural errors...

Persistent link: https://www.econbiz.de/10008496457

Cúrdia, Vasco; Reis, Ricardo - C.E.P.R. Discussion Papers - 2010

The dynamic stochastic general equilibrium (DSGE) models that are used to study business cycles typically assume that … Bayesian econometric method that uses conjugate conditionals to make the estimation of DSGE models with correlated disturbances … disturbances resolves some conflicts between estimates from DSGE models and those from vector autoregressions, and that a key …

Persistent link: https://www.econbiz.de/10008468649

1
2
3
4
5
6
7
8
9
10
Next
Last