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Fisherian and Ricardian trade
Sinn, Stefan - Institut für Weltwirtschaft (IfW) - 1991
This paper discusses the difference between Fisherian and Ricardian trade in terms of a simple two-period model of a small open economy. Fisherian or intertemporal trade occurs when goods are traded today against the promise to deliver goods in the future. The resulting net resource transfer is...
Persistent link: https://www.econbiz.de/10009276261
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On the power and weakness of rational expectations: Logical fallacies, periodic bubbles and business cycles
Gracia, Eduard - Institut für Weltwirtschaft (IfW) - 2012
A popular interpretation of the Rational Expectations/Efficient Markets hypothesis states that, if the hypothesis holds, then market valuations must follow a random walk. This postulate has frequently been criticized on the basis of empirical evidence. Yet the assertion itself incurs what we...
Persistent link: https://www.econbiz.de/10010956093
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Endogenous Indexing and Monetary Policy Models
Mash, Richard - Institut für Weltwirtschaft (IfW) - 2007
Models in which firms use a rule of thumb or partial indexing in price setting are prominent in the recent monetary policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We consider the implications of firms choosing the optimal...
Persistent link: https://www.econbiz.de/10005083332
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Modeling the Effects of Financial Constraints on Firm´s Investment
Tomat, Gian Maria - Institut für Weltwirtschaft (IfW) - 2007
The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q …, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm …
Persistent link: https://www.econbiz.de/10005083386
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Production Constraints and the NAIRU
Driver, Ciaran F.; Hall, Stephen G. - Institut für Weltwirtschaft (IfW) - 2007
1980s as industry failed to match the increase in labour flexibility with rising capital investment. …
Persistent link: https://www.econbiz.de/10005083405
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Making sense of the J-curve: Capital utilisation, output, and total factor productivity in Polish industry 1990 - 1993
Falk, Martin; Raiser, Martin; Brauer, Holger - Institut für Weltwirtschaft (IfW) - 1996
The economies of Central and Eastern Europe are undergoing a period of rapid structural change. The general pattern confirms to the J-curve anticipated by several observers at the start of transition. This paper conceptualises the J-curve as the result of a combination of two factors. First,...
Persistent link: https://www.econbiz.de/10009276341
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Transfers and transition: The impact of government support on factor demand and production in Eastern Germany
Gerling, Katja - Institut für Weltwirtschaft (IfW) - 1998
factor prices on investment, employment and output in the eastern German manufacturing sector. The principal aim is twofold …
Persistent link: https://www.econbiz.de/10009276647
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Capital, Endogenous Separations, and the Business Cycle
Roye, Björn van; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009
We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital theory, we suggest a more general approach, such that workers have unrestricted access to a proportional share of the capital stock. We find that the introduction of capital...
Persistent link: https://www.econbiz.de/10008635829
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Uncertainty and capacity constraints: reconsidering the aggregate production function
Gracia, Eduard - Institut für Weltwirtschaft (IfW) - 2011
The Cobb-Douglas function is today one of the most widely-adopted assumptions in economic modeling, yet both its theoretical and empirical basis have long been under question. The purpose of this paper is to build an alternative production function on neoclassical microfoundations to address...
Persistent link: https://www.econbiz.de/10009018211
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The Role of Sentiment in the Provision of Credit
Meyer, Björn O. - Institut für Weltwirtschaft (IfW) - 2014
The provision of credit has been shown to be eminent for macroeconomic activity.Recent research highlighted that optimism may play a role in the provision of credit through leverage cycles. A decomposition of corporate bond spreads allows the modelling of a propensity-to-lend through an excess...
Persistent link: https://www.econbiz.de/10011093912