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The Impact of Uncertainty on the European Energy Market: A Scenario Aggregation Approach
Brekke, Kjell Arne; Golombek, Rolf; Kaut, Michal; … - CESifo - 2013
We present a simple approach to transform a deterministic numerical model, where several agents simultaneously make decisions, into a stochastic model. This approach, which builds on scenario aggregation, a numerical method developed to solve decision problems under uncertainty, is used to build...
Persistent link: https://www.econbiz.de/10010720640
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Optimal Growth and Impatience: A Phase Diagram Analysis
Chang, Fwu-Ranq - CESifo - 2004
In this paper we show that we can replace the assumption of constant discount rate in the one-sector optimal growth model with the assumption of decreasing marginal impatience without losing major properties of the model. In particular, we show that the steady state exists, is unique, and has a...
Persistent link: https://www.econbiz.de/10005406366
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Global Warming and a Potential Tipping Point in the Atlantic Thermohaline Circulation: The Role of Risk Aversion
Belaia, Mariia; Funke, Michael; Glanemann, Nicole - CESifo - 2014
Common integrated assessment models produce the counterintuitive result that higher risk aversion does not lead to stronger near-term abatement. This paper re-examines this result with a DICE model that is fully coupled with a thermohaline circulation model. It also features Epstein-Zin utility...
Persistent link: https://www.econbiz.de/10010886106
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Modeling Institutions, Start-Ups and Productivity during Transition
Brixiova, Zuzana; Egert, Balazs - CESifo - 2010
The transition paths from plan to market have varied markedly across countries. Central and Eastern European and the Baltic countries, which opted for a fast and profound transformation of their institutions including business climates, rapidly narrowed the productivity gap with advanced...
Persistent link: https://www.econbiz.de/10008572571
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Monetary Policy and the Relative Price of Durable Goods
Cantelmo, Alessandro; Melina, Giovanni - CESifo - 2015
In a VAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or mildly positive. It significantly falls only if narrowly defined as the ratio between new house and nondurables prices. These findings survive three identification strategies and...
Persistent link: https://www.econbiz.de/10011272622
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Sector Specific News Shocks in Aggregate and Sectoral Fluctuations
Görtz, Christoph; Tsoukalas, John D. - CESifo - 2013
Using a two-sector estimated DSGE model with a financial channel we show the sector where TFP news arrives matters for …
Persistent link: https://www.econbiz.de/10010667413
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Exchange Rates and Asset Prices: Heterogeneous Agents at Work
Piccillo, Giulia - CESifo - 2013
exchange rates and stock prices. On the other hand we model the relationship between these two series through a DSGE model … information from the financial markets. The second rule follows a backward looking approach. We find that when DSGE agents … volatility of these markets. The simulated series replicate the stylized facts of real data. We also estimate the DSGE and …
Persistent link: https://www.econbiz.de/10010665041
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Beyond the DSGE Straitjacket
Pesaran, Hashem M.; Smith, Ron P. - CESifo - 2011
, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations …. We argue that the dominance of this particular sort of DSGE and the resistance of some in the profession to alternatives …
Persistent link: https://www.econbiz.de/10009020781
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Productivity as if Space Mattered: An Application to Factor Markets Across China
Cheng, Wenya; Morrow, John; Tacharoen, Kitjawat - CESifo - 2013
Although firms may face radically different production conditions, this dimension of firm heterogeneity is often overlooked. We model input demand across local factor markets, explicitly considering search costs which explain why firms care about both the price and availability of inputs. The...
Persistent link: https://www.econbiz.de/10010877649
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Trade and Imperfect Competition in General Equilibrium
Koska, Onur A.; Stähler, Frank - CESifo - 2011
This paper employs a general equilibrium model of imperfect competition and trade in which capital is used to establish firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price equalization and one with different factor prices. When...
Persistent link: https://www.econbiz.de/10009274515