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Efficient Mechanisms for Bilateral Trading with Cooperative Investment

Zhao, Rui Ray - Econometric Society - 2004

This paper analyzes a bilateral trade problem where the seller makes hidden investment that influences the buyer's private valuation. Complete contracts can be written on observable trade decisions. It is shown that efficiency level in investment and trade is negatively related to the scope of...

Persistent link: https://www.econbiz.de/10005063600

Inter-temporal Price Discrimination with Time Inconsistent Consumers

Sarafidis, Yianis - Econometric Society - 2004

This paper looks at the inter-temporal price discrimination game that arises when a monopolist faces naïve-time-inconsistent consumers. En route to solving this game, we introduce two new solution concepts for dynamic games where some players are time inconsistent. The first solution concept is...

Persistent link: https://www.econbiz.de/10005342205

Power laws and the origins of aggregate fluctuations

Gabaix, Xavier - Econometric Society - 2004

If firm sizes have a small dispersion, microeconomic shocks lead to negligible aggregate fluctuations. This has led economists to appeal to macroeconomic (sectoral or aggregate shocks) shocks to explain aggregate fluctuations. However, the empirical distribution of firms is fat-tailed. This...

Persistent link: https://www.econbiz.de/10005342206

Endogenous Business Cycles with Consumption Externalities

Li, Zhi; Yin, Xiaopeng - Econometric Society - 2004

, and are strongly supported by the data from the United States in the different periods. …

Persistent link: https://www.econbiz.de/10005342274

The US Phillips Curve and inflation expectations: A State Space Markov-Switching explanatory model

Million, Nicolas; Guerrero, Guillaume - Econometric Society - 2004

This paper proposes a new empirical representation of US inflation expectations in a Stace-Space Markov-Switching framework in order to identify the expectations regimes which are associated with short and long term Phillips curves. Results suggest that the dynamics of inÂ‡ation expectation...

Persistent link: https://www.econbiz.de/10005086423

Financial Frictions and Business Cycles in Developing Countries

Guajardo, Jaime - Econometric Society - 2004

procyclical current account balances and employment. This contrasts with the data for emerging countries, where consumption … studies have reconciled theory and data using different households preferences for emerging countries vs. developed ones … borrowing constraint and labor financing wedges, can reconcile theory and data without appealing to changes in preferences, but …

Persistent link: https://www.econbiz.de/10005129792

The role of permanent and transitory components in business cycle volatility moderation

Radchenko, Stan; Korenok, Oleg - Econometric Society - 2004

The paper examines the processes underlying economic fluctuations by investigating the volatility moderation of U.S. economy in the early 1980's. We decompose the volatility decline using a dynamic factor framework into a common stochastic trend, common transitory component and idiosyncratic...

Persistent link: https://www.econbiz.de/10005130191

Interpreting Permanent and Transitory Shocks to Output When Aggregate Demand May Not Be Neutral in the Long-run

Keating, John - Econometric Society - 2004

I examine the statistical model of permanent and transitory shocks to output under the following structural assumptions: An aggregate supply shock that raises output will cause the price level to fall and an aggregate demand shock that initially raises output will cause the price level to rise....

Persistent link: https://www.econbiz.de/10005130221

Liquidity, Infinite Horizons and Macroeconomic Fluctuations

Kato, Ryo - Econometric Society - 2004

This paper develops a computable dynamic general equilibrium model in which corporate demand for liquidity is endogenously determined. In the model liquidity demand is motivated by moral hazard as in Holmstrom and Tirole (1998). As a result of incorporating agency cost and endogenously...

Persistent link: https://www.econbiz.de/10005063751

Deflation, Real Wages, and the International Great Depression: A Productivity Puzzle

Leung, Ron; Cole, Harold L.; Ohanian, Lee E. - Econometric Society - 2004

correlation between real wages and output in the models is -1, while this correlation is positive in the data. This means that the … similar to productivity changes in the data. We also find that productivity shocks account for about 2/3 of output changes …

Persistent link: https://www.econbiz.de/10005170273