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Lucas on the relationship between theory and ideology

De Vroey, Michel - Institut für Weltwirtschaft (IfW) - 2010

This paper concerns a neglected aspect of Lucas's work: his methodological writings, published and unpublished. Particular attention is paid to his views on the relationship between theory and ideology. I start by setting out Lucas's non-standard conception of theory: to him, a theory and a...

Persistent link: https://www.econbiz.de/10008805013

Revenue and expenditure nexus: A case study of ECOWAS

Magazzino, Cosimo - Institut für Weltwirtschaft (IfW) - 2012

This paper aims to assess the relationship among fiscal variables (net lending, government expenditure and revenue) and economic growth in Sub-Saharan African countries. Using yearly data for the period between 1980 and 2011 in 15 ECOWAS countries, a weak long-run relationship between government...

Persistent link: https://www.econbiz.de/10010956037

Does Macroeconomics Need Microeconomic Foundations?

Da Silva, Sergio - Institut für Weltwirtschaft (IfW) - 2009

The author argues that it is microeconomics that needs foundations, not macroeconomics. Preferences need to be built on biology, and, in particular, on neuroscience. In contrast, macroeconomics could benefit from rationalizations of aggregate economic phenomena by non-equilibrium statistical...

Persistent link: https://www.econbiz.de/10005083350

Investing in European Stock Markets for High-Technology Firms

Pierdzioch, Christian; Schertler, Andrea - Institut für Weltwirtschaft (IfW) - 2006

We used a recursive modeling approach to study whether investors could, in real time, have used information on the comovement of stock markets to forecast stock returns in European stock markets for high-technology firms. We used weekly data on returns in the Neuer Markt, the Nouveau Marché,...

Persistent link: https://www.econbiz.de/10005755170

Keynesian and Monetarist Views on the German Unemployment Problem ; Theory and Evidence

Gottschalk, Jan - Institut für Weltwirtschaft (IfW) - 2002

Persistently high unemployment rates in Germany have led to a long-running controversy on the causes of the unemployment problem. This paper aims to review the contribution of Keynesian and monetarist theories to this controversy and explores empirically their implications for the explanation...

Persistent link: https://www.econbiz.de/10005818896

Scitovsky, behavioural economics, and beyond

Pugno, Maurizio - Institut für Weltwirtschaft (IfW) - 2013

By revisiting Scitovsky's work on well-being, which introduces 'novelty' into the consumer's option set as a peculiar source of satisfaction, this paper finds a number of connections with the recent behavioural economics so as to open new lines on inquiry. First, similarly to behavioural...

Persistent link: https://www.econbiz.de/10010956139

Fundamental uncertainty, portfolio choice, and liquidity preference theory

Pasche, Markus - Institut für Weltwirtschaft (IfW) - 2009

One of Keynes’ core issues in his liquidity preference theory is how fundamental uncertainty affects the propensity to hold money as a liquid asset. The paper critically assesses various formal representations of fundamental uncertainty and provides an argument for a more bounded rational...

Persistent link: https://www.econbiz.de/10008561119

Trend Growth and Learning About Monetary Policy Rules in a Two-Block World Economy

Schaling, Eric; Tesfaselassie, Mewael F. - Institut für Weltwirtschaft (IfW) - 2013

of openness and growth on determinacy and learnability of worldwide rational expectations equilibria we develop a two …-country New Keynesian model with growth. We analyze these issues for contemporaneous data and expectations-based monetary policy … expectations-based policy rule the conditions for determinacy and learnability also become more stringent on account of openness …

Persistent link: https://www.econbiz.de/10010886862

The Optimal Inflation Rate and Firm-Level Productivity Growth

Weber, Henning - Institut für Weltwirtschaft (IfW) - 2012

Empirical data show that firms tend to improve their ranking in the productivity distribution over time. A sticky-price model with firm-level productivity growth fits this data and predicts that the optimal long-run inflation rate is positive and between 1.5% and 2% per year. In contrast, the...

Persistent link: https://www.econbiz.de/10010886886

Expanding the welfare system : a proposal for reform

Orszag, Jonathan Michael; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 1998

The proposal involves the establishment of ?welfare accounts? for every person in a country. There are to be four accounts: a retirement account (covering pensions), an unemployment account (covering unemployment support), a human capital account (covering education and training), and a health...

Persistent link: https://www.econbiz.de/10010955894