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Voluntary Public Goods Provision, Coalition Formation, and Uncertainty
Burger, Nicholas E. - 2009
coalitions to provide public goods. Theory is ambiguous on the equilibrium coalition size and contribution rates. We examine the … emergence of coalitions, their size, and how uncertainty in public goods provision affects contribution levels and coalition … coalition to provide the good. Contrary a core theoretical result, we find that coalition size increases when the public good …
Persistent link: https://www.econbiz.de/10012463106
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Coalition Formation in Political Games
Acemoglu, Daron - 2006
We study the formation of a ruling coalition in political environments. Each individual is endowed with a level of … political power. The ruling coalition consists of a subset of the individuals in the society and decides the distribution of … resources. A ruling coalition needs to contain enough powerful members to win against any alternative coalition that may …
Persistent link: https://www.econbiz.de/10012465911
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Can Learnability Save New-Keynesian Models?
Cochrane, John H. - 2009
Bennett McCallum (2009), applying Evans and Honkapohja's (2001) results, argues that "learnability" can save New-Keynesian models from their indeterminacies. He claims the unique bounded equilibrium is learnable, and the explosive equilibria are not. However, he assumes that agents can directly...
Persistent link: https://www.econbiz.de/10012463190
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Trading Frictions and House Price Dynamics
Caplin, Andrew - 2008
We construct a model of trade with matching frictions. The model provides a simple characterization for the joint proces of prices, sales and inventory. We compare the implications of the model to certain properties of housing markets. The model can generate the large price changes and the...
Persistent link: https://www.econbiz.de/10012464042
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Stabilizing Expectations under Monetary and Fiscal Policy Coordination
Eusepi, Stefano - 2008
This paper analyzes the constraints imposed on monetary and fiscal policy design by expectations formation. Households and firms learn about the policy regime using historical data. Regime uncertainty substantially narrows, relative to a rational expectations analysis of the model, the menu of...
Persistent link: https://www.econbiz.de/10012464256
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Determinacy, Learnability, and Plausibility in Monetary Policy Analysis : Additional Results
McCallum, Bennett T. - 2008
In a very broad class of dynamic linear models, if agents possess knowledge of current endogenous variables in a least-squares learning process, determinacy of a rational expectations (RE) equilibrium is sufficient but not necessary for learnability of that equilibrium. Thus, since learnability...
Persistent link: https://www.econbiz.de/10012464483
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E-Stability vis-a-vis Determinacy Results for a Broad Class of Linear Rational Expectations Models
McCallum, Bennett T. - 2006
It is argued that learnability/E-stability is a necessary condition for a RE solution to be plausible. A class of linear models considered by Evans and Honkapohja (2001) is shown to include all models of the form used by King and Watson (1998) and Klein (2000), which permits any number of lags,...
Persistent link: https://www.econbiz.de/10012466223
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Generalized Stochastic Gradient Learning
Evans, George W. - 2005
We study the properties of generalized stochastic gradient (GSG) learning in forward-looking models. We examine how the conditions for stability of standard stochastic gradient (SG) learning both differ from and are related to E-stability, which governs stability under least squares learning. SG...
Persistent link: https://www.econbiz.de/10012466981
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Is the Fiscal Theory of the Price Level Learnable?
McCallum, Bennett T. - 2003
This paper presents a prototype model for development of the fiscal theory of the price level.' In this simple setting, the fiscal theory's distinctiveness relies upon adoption of a bubble solution, rather than the rational-expectations fundamentals solution. The paper then shows that the fiscal...
Persistent link: https://www.econbiz.de/10012468736
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The Unique Minimum State Variable RE Solution is E-Stable in All Well Formulated Linear Models
McCallum, Bennett T. - 2003
This paper explores the relationship between the closely linked concepts of E-stability and least-squares learnability, featured in recent work by Evans and Honkapohja (1999, 2001), and the minimum-state-variable (MSV) solution defined by McCallum (1983) and used by many researchers for rational...
Persistent link: https://www.econbiz.de/10012468737