Showing 1 - 8 of 8
Theoretical work on indexation and contract duration suggests no role for the expected rate of inflation in equations … explaining these variables. Yet, stand-alone or two-equation studies of indexation and contract duration often report that this … duration and indexation decisions and offer a context within which earlier findings can be understood. In this three …
Persistent link: https://www.econbiz.de/10005094416
determinants of key provisions of contracts such as their duration and indexation clauses. Econometric techniques, which account … for the interaction between duration and indexation, as well as the latent nature of the elasticity of indexation are used …
Persistent link: https://www.econbiz.de/10005406115
We investigate numerically how indexation of funded pensions for inflation can be differentiated across the various … benefitting from a shift away from uniform indexation. Those welfare shifts result from systematic redistribution of welfare …
Persistent link: https://www.econbiz.de/10008833935
Jesús Fernández-Villaverde, Pablo A. Guerrón-Quintana, Juan F. Rubio-Ramírez and Martín Uribe (2011) find that risk shocks are an important factor in explaining emerging market business cycles. We show that their model needs to be recalibrated because it underpredicts the targeted business...
Persistent link: https://www.econbiz.de/10010772272
Do survey data on inflation expectations contain useful information for estimating macroeconomic models? I address this question by using survey data in the New Keynesian model by Smets and Wouters (2007) to estimate and compare its performance when solved under the assumptions of Rational...
Persistent link: https://www.econbiz.de/10009278136
Theory and evidence suggest that in an environment of well-anchored expectations, temporary news or shocks to economic variables, should not affect agents’ expectations of inflation in the long term. Our estimated structural VARs show that both long- and short-term inflation expectations are...
Persistent link: https://www.econbiz.de/10010670794
Using daily data on inflation-indexed bonds, we find evidence of a negative relationship between ECB communication regarding risks to price stability - measured on the basis of the frequency and strength of the keyword ‘vigilance’ - and changes in euro area break-even inflation. However,...
Persistent link: https://www.econbiz.de/10005094469
We provide evidence on the fit of the hybrid New Keynesian Phillips curve for selected euro zone countries, the US and the UK. Instead of imposing rational expectations and estimating the Phillips curve by the Generalized Method of Moments, we follow Roberts (1997) and Adam and Padula (2003) and...
Persistent link: https://www.econbiz.de/10005181411