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Grossman, Herschel I. - 1984

This paper derives a reputational equilibrum for inflation in a model in which the government obtains valuable … maximal seigniorage produces an equilibrium inflation rate equal either to a generalization of the Friedman elasticity …. Thus, the model formalizes the conjecture that epizodes of inflation rates in excess of the Friedman solution are …

Persistent link: https://www.econbiz.de/10012477581

A Generic Model of Monetary Policy, Inflation, and Reputation

Grossman, Herschel I. - 1987

This paper analyzes a reputational equilibrium for inflation under the generic assumption that monetary policy reflects … proximate preferences for low expected inflation and positive unexpected inflation. The paper stresses the qualitative … implication that in a reputational equilibrium the policymaker behaves as if it is concerned about controlling inflation, even …

Persistent link: https://www.econbiz.de/10012476829

Producers and Predators

Grossman, Herschel I. - 1999

This paper explores a series of general-equilibrium models in which people can choose to be either producers or predators, and in which producers can allocate their resources either to production or to guarding their production against predators. The analysis shows how the ratio of predators to...

Persistent link: https://www.econbiz.de/10012471640

Infant-Industry Protection Reconsidered : The Case of Informational Barriers to Entry

Grossman, Gene M. - 1987

In industries with imperfect consumer information, the lack of a reputation puts latecomers at a competitive disadvantage vis-a-vis established firms. We consider whether the existence of such informational barriers to entry provides a valid reason for temporarily protecting infant producers of...

Persistent link: https://www.econbiz.de/10012476910

On the Inception of Rational Bubbles in Stock Prices

Diba, Behzad T. - 1986

Persistent link: https://www.econbiz.de/10012477082

Foreign Counterfeiting of Status Goods

Grossman, Gene M. - 1986

We study the positive and normative effects of counterfeiting, i.e.,trademark infringement, in markets where consumers are not deceived by forgeries.The fact that consumers are willing to pay more for counterfeits than for generic merchandise of similar quality suggests that they value the...

Persistent link: https://www.econbiz.de/10012477159

Rational Bubbles in Stock Prices?

Diba, Behzad T. - 1985

This paper reports empirical tests for the existence of rational bubbles in stock prices. The analysis focuses on a familiar model that defines market fundamentals to be the expected present value of dividends, discounted at a constantrate, and defines a rational bubble to be a self-confirming...

Persistent link: https://www.econbiz.de/10012477310

Dynamic R&D Competition

Grossman, Gene M. - 1985

We study a simple, two-stage, stochastic patent race involving two firms. We examine the behavior of the participants as they gain the lead or fall behind in the race. We find that the leader engages in R&D more intensively than does the follower, and that both firms intensify their efforts if...

Persistent link: https://www.econbiz.de/10012477406

Optimal Dynamic R&D Programs

Grossman, Gene M. - 1985

We study the optimal pattern of outlays for a single firm pursuing an R&D program over time. In the deterministic case, (a) the amount of progress required to complete the project is known, and (b) the relationship between outlays and progress is known. In this case, it is optimal to increase...

Persistent link: https://www.econbiz.de/10012477422

The Impossibility of Rational Bubbles

Diba, Behzad T. - 1985

A rational bubble would involve a self-confirming belief that an asset price depends on information that includes variables or parameters that are not part of market fundamentals. The existing literature shows that, if market fundamentals are economically interesting, i.e., forward looking, any...

Persistent link: https://www.econbiz.de/10012477466