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Fujiwara, Ippei; Hirose, Yasuo - Crawford School of Public Policy, Australian National … - 2012

this phenomenon in the context of equilibrium indeterminacy in dynamic stochastic general equilibrium (DSGE) models. We … first analytically show that a model under indeterminacy exhibits richer dynamics that can improve forecastability. Then …, using a sticky-price DSGE model, we numerically demonstrate that indeterminacy arising from passive monetary policy …

Persistent link: https://www.econbiz.de/10011201596

An Estimated DSGE Model with a Deflation Steady State

Hirose, Yasuo - Crawford School of Public Policy, Australian National … - 2014

equilibrium indeterminacy around the deflation steady state, a set of specific equilibria is selected by Bayesian methods …. According to the estimated model, shocks to households’ preferences, investment adjustment costs, and external demand do not …

Persistent link: https://www.econbiz.de/10010904320

EXPECTATIONS, LEARNING AND BUSINESS CYCLE FLUCTUATIONS

Eusepi, Stefano; Preston, Bruce - Crawford School of Public Policy, Australian National … - 2008

This paper develops a theory of expectations-driven business cycles based on learning. Agents have incomplete knowledge about how market prices are determined and shifts in expectations of future prices affect dynamics. In a real business cycle model, the theoretical framework amplifies and...

Persistent link: https://www.econbiz.de/10010607750

Expectations Traps and Coordination Failures:Selecting Among Multiple Discretionary Equilibria

Dennis, Richard; Kirsanova, Tatiana - Crawford School of Public Policy, Australian National … - 2010

Discretionary policymakers cannot manage private-sector expectations and cannot co- ordinate the actions of future policymakers. As a consequence, expectations traps and coordination failures can occur and multiple equilibria can arise. In order to utilize the explanatory power of models with...

Persistent link: https://www.econbiz.de/10010607741

On a Unique Nondegenerate Distribution of Agents in the Huggett Model

Kam, Timothy; Lee, Junsang - Crawford School of Public Policy, Australian National … - 2010

The seminal work of Huggett [“The risk-free rate in heterogeneous-agent incomplete-insurance economies”, Journal of Economic Dynamics and Control, 1993, 17(5-6), 953-969] showed that there exists a unique stationary distribution of agent types, given by their individual states of asset and...

Persistent link: https://www.econbiz.de/10010904308

Estimating Bayesian Decision Problems with Heterogeneous Priors*

Hansen, Stephen; McMahon, Michael - Crawford School of Public Policy, Australian National … - 2013

In many areas of economics there is a growing interest in how expertise and preferences drive individual and group …

Persistent link: https://www.econbiz.de/10011185973

Engel Curves and Equivalence Scales for Bangladesh

Hasan, Syed Abul - Crawford School of Public Policy, Australian National … - 2012

This paper examines the Engel curve for major expenditure categories and estimates equivalence scales for Bangladesh. We compare Engel curves estimated by semi-parametric techniques to those arising from models based on consumer theory. Our analysis supports the argument that quadratic food...

Persistent link: https://www.econbiz.de/10011201575

Inflation, Macroeconomic Policy and Hunger: A Variation on a Theme by C. Rangarajan

Jha, Raghbendra - Crawford School of Public Policy, Australian National … - 2010

This paper re-emphasizes the importance of price stability as a tool for macroeconomic policy and make it more specific by considering a typically (unanticipated) advantage of stabilizing the Consumer Price Index (CPI). I briefly review the recent economic growth performance of the Indian...

Persistent link: https://www.econbiz.de/10008861942

LEARNING AND INTERNATIONAL TRANSMISSION SHOCKS

McKibbin, Warwick J.; Tan, Kang Yong - Crawford School of Public Policy, Australian National … - 2006

This paper studies the implications of adaptive learning in the modelling of international linkages in a two-region MSG-Cubed (MSG3) model built on micro-founded behaviours of firms and households. The nature of the transmission process under rational expectations versus the adaptive learning...

Persistent link: https://www.econbiz.de/10011201621

Debt, Policy Uncertainty and Expectations Stabilization

Eusepi, Stefano; Preston, Bruce - Crawford School of Public Policy, Australian National … - 2010

This paper develops a model of policy regime uncertainty and its consequences for stabilizing expectations. Because of learning dynamics, uncertainty about monetary and fiscal policy is shown to restrict, relative to a rational expectations analysis, the set of policies consistent with...

Persistent link: https://www.econbiz.de/10010607745