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Evolving patterns of international trade

Proudman, James; Redding, Stephen - London School of Economics (LSE) - 2000

Theoretical models of growth and trade suggest that patterns of international specialization are dynamic and evolve endogenously over time. Initial comparative advantages are either reinforced or gradually unwound with the passage of time. This paper puts forward an empirical framework for...

Persistent link: https://www.econbiz.de/10010884664

Aggregate demand, idle time, and unemployment

Michaillat, Pascal; Saez, Emmanuel - London School of Economics (LSE) - 2015

This article develops a model of unemployment fluctuations. The model keeps the architecture of the general … affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle … time of their employees and thus increases their labor demand. This in turn reduces unemployment. We combine the …

Persistent link: https://www.econbiz.de/10011276088

Maximum Likelihood in the Frequency Domain: a Time to Build Example.

Christiano, L.J.; Vigfusson, R.J. - London School of Economics (LSE) - 1999

A well known result is that the Gaussian log-likelihood can be expressed as the sum over different frequency components. This implies that the likelihood ratio statistic has a similar linear decomposition. We exploit these observations to devise diagnostic methods that are useful for...

Persistent link: https://www.econbiz.de/10005207535

Ex post versus ex ante measures of the user cost of capital

Oulton, Nicholas - London School of Economics (LSE) - 2005

When doing growth accounting, should we use ex post or ex ante measures of user costs to calculate the contribution of capital? The answer, based on a simple model of temporary equilibrium, is that ex post is better in theory. In practice researchers usually calculate ex post user costs by...

Persistent link: https://www.econbiz.de/10010745052

The objective benefits of subjective well-being

De Neve, Jan-Emmanuel; Diener, Ed; Tay, Louis; Xuereb, Cody - London School of Economics (LSE) - 2013

The aim of this paper is to survey the 'hard' evidence on the effects of subjective well-being. In doing so, we complement the evidence on the determinants of well-being by showing that human well-being also affects outcomes of interest such as health, income, and social behaviour. Generally, we...

Persistent link: https://www.econbiz.de/10010745197

A model of aggregate demand and unemployment

Michaillat, Pascal; Saez, Emmanuel - London School of Economics (LSE) - 2013

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good … prices as parameters. We obtain the following results: (1) unemployment and unsold production prevail in equilibrium; (2 … and reduce unemployment. …

Persistent link: https://www.econbiz.de/10010745710

Inherited vs self-made wealth: theory & evidence from a rentier society (Paris 1872-1937)

Postel-Vinay, Gilles; Piketty, Thomas; Rosenthal, … - London School of Economics (LSE) - 2011

This paper divides the population into two groups: the "inheritors" or "rentiers" (whose wealth is smaller than the capitalized value of their inherited wealth, i.e. who consumed more than their labor income during their lifetime); and the "savers" or "self-made men" (whose wealth is larger than...

Persistent link: https://www.econbiz.de/10010746502

Preferences for fair prices, cursed inferences, and the nonneutrality of money

Eyster, Erik; Madarász, Kristóf; Michaillat, Pascal - London School of Economics (LSE) - 2015

This paper explains the nonneutrality of money from two assumptions: (1) consumers dislike paying prices that exceed some fair markup on firms’ marginal costs; and (2) consumers under infer marginal costs from available information. After an increase in money supply, consumers underappreciate...

Persistent link: https://www.econbiz.de/10011163499

The Beveridge curve

Yashiv, Eran - London School of Economics (LSE) - 2007

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

Persistent link: https://www.econbiz.de/10010744873

Unemployment in Britain: a European success story

Pissarides, Christopher - London School of Economics (LSE) - 2003

Unemployment in Britain has fallen from high European-style levels to US levels. I argue that the key reasons are first … the reform of monetary policy, in 1993 with the adoption of inflation targeting and in 1997 with the establishment of the … an institutional change that reduced inflationary expectations in the face of falling unemployment. The decline of trade …

Persistent link: https://www.econbiz.de/10010928626