Showing 1 - 10 of 36
This paper is a study of money in overlapping generations models with cash-in-advance constraints. We first offer a brief review of different features of cash-in-advance constraint. Then we propose a general formulation and study the neutrality of money. We show that both neutrality and...
Persistent link: https://www.econbiz.de/10005478952
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The paper is dealing with the controversial question of the potential impact of stock market fluctuations on consumer confidence. In the last few years, this confidence index has gained importance in business cycle analysis and empirical evidence has shown its explanatory power in forecasting...
Persistent link: https://www.econbiz.de/10005043029
This paper provides evidence of the positive impact of economic integration on EU regions' business cycles convergence by focusing on two neighbouring countries: Spain and Portugal. We show that while a rise in cross-country business cycle correlation has also been experienced by other European...
Persistent link: https://www.econbiz.de/10005043079
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In this paper, we modify the model of Benhabib and Laroque in which the behaviour of non steady-state equilibria in the neighborhood of the goldenrule steady-state are studied, to include liquidity constraints. We observe in an example, the appearance of new cycles.
Persistent link: https://www.econbiz.de/10005634055
We study an endogenous business cycle model with Cournotian monopolistic competition and an endogenous number of firms in each sector. Our model is a simple general equilibrium macroeconomic model introducing overlapping generations both of consumers and firms. Firms strategically decide on...
Persistent link: https://www.econbiz.de/10005478917
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We develop in this paper simple geometrical methods to study local indeterminancy; bifurcations and stochastic (sunspot) equilibria near a steady state, in nonlinear two dimensional economic models. We present stochastic sunspot equilibria, which allows a constructive description of local...
Persistent link: https://www.econbiz.de/10005669285
In a dynamic general equilibrium setup, this paper highlights the role of vintages and creative destruction in business fluctuations. By stressing the forward-looking characteristic of the optimal scrapping rule, we use a standard rational expectations argument to show the constancy of the...
Persistent link: https://www.econbiz.de/10005669320