Similar Search Results

Self-Fulfilling Risk Panics : An Expected Utility Framework

Benhabib, Jess - 2020

-driven equilibria under general utility functions within an OLG structure. Our paper further shows that the existence of sentiment …

Persistent link: https://www.econbiz.de/10012482502

Inflation Stabilization and Welfare : The Case of a Distorted Steady State

Benigno, Pierpaolo - 2004

approximation to the expected utility of the representative household in a model of this kind is related inversely to the expected …

Persistent link: https://www.econbiz.de/10012467851

Inequality and the Zero Lower Bound

Fernández-Villaverde, Jesús; Marbet, Joël; Nuño, Galo; … - National Bureau of Economic Research - 2023

This paper studies how household inequality shapes the effects of the zero lower bound (ZLB) on nominal interest rates on aggregate dynamics. To do so, we consider a heterogeneous agent New Keynesian (HANK) model with an occasionally binding ZLB and solve for its fully non-linear stochastic...

Persistent link: https://www.econbiz.de/10014287383

New Directions for Stochastic Open Economy Models

Obstfeld, Maurice - 1999

The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade....

Persistent link: https://www.econbiz.de/10012471471

Implications of Stochastic Transmission Rates for Managing Pandemic Risks

Hong, Harrison - 2020

We develop a model of pandemic risk management and firm valuation. We introduce aggregate transmission shocks into an epidemic model and link valuations to infections via an asset-pricing framework with vaccines. Infections lower earnings growth but firms can mitigate damages. We estimate a...

Persistent link: https://www.econbiz.de/10012481801

A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration

Eggertsson, Gauti B. - 2020

This paper presents a toolkit to solve for equilibrium in economies with the effective lower bound (ELB) on the nominal interest rate in a computationally efficient way under a special assumption about the underlying shock process, a two-state Markov process with an absorbing state. We...

Persistent link: https://www.econbiz.de/10012482097

Strategic Interaction Among Heterogeneous Price-Setters In An Estimated DSGE Model

Coibion, Olivier - 2008

We consider a DSGE model in which firms follow one of four price-setting regimes: sticky prices, sticky-information, rule-of-thumb, or full-information flexible prices. The parameters of the model, including the fractions of each type of firm, are estimated by matching the moments of the...

Persistent link: https://www.econbiz.de/10012464325

Endogenous Volatility at the Zero Lower Bound : Implications for Stabilization Policy

Basu, Susanto - 2015

At the zero lower bound, the central bank's inability to offset shocks endogenously generates volatility. In this setting, an increase in uncertainty about future shocks causes significant contractions in the economy and may lead to non-existence of an equilibrium. The form of the monetary...

Persistent link: https://www.econbiz.de/10012456833

Utility Evaluation of Risk in Retirement Saving Accounts

Poterba, James - 2003

wealth both by showing the empirical distribution of potential wealth values, and by computing the expected utility of these … determining the expected utility cost of holding equities in the retirement account. Our findings also demonstrate the importance … of the equity premium in affecting investors' utility from different retirement asset allocations. Viewed from the …

Persistent link: https://www.econbiz.de/10012468805

Climate Sensitivity Uncertainty : When is Good News Bad?

Freeman, Mark C. - 2015

Climate change is real and dangerous. Exactly how bad it will get, however, is uncertain. Uncertainty is particularly relevant for estimates of one of the key parameters: equilibrium climate sensitivity--how eventual temperatures will react as atmospheric carbon dioxide concentrations double....

Persistent link: https://www.econbiz.de/10012457766

1
2
3
4
5
6
7
8
9
10
Next
Last