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shown to help explain the negative response of labour input to a positive, permanent technology shock, several asset pricing …
Persistent link: https://www.econbiz.de/10005537630
In this paper we model the contribution of monetary growth shocks to aggregate fluctuations. Our innovation is to combine persistent money growth shocks with taxes on nominal capital gains in a model in which the central bank operates policy using an interest rate rule. All three features are...
Persistent link: https://www.econbiz.de/10005537643
A number of recent papers have concluded that stochastic volatility plays a prominent role in describing the business cycle, particularly for the characterization of monetary policy. The impact of including stochastic volatility in DSGE models remains, however, unexplored. This paper therefore...
Persistent link: https://www.econbiz.de/10005343025
Persistent link: https://www.econbiz.de/10005345656
Persistent link: https://www.econbiz.de/10005706656
I illustrate the importance of choosing the correct space in empirical applications of spatial econometric models. I consider different spatial weighting matrices in an SAR(1) model -- contiguity matrix, distance based matrix and their variants adjusted for size of each observation. I show...
Persistent link: https://www.econbiz.de/10005342949
Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate procyclical unemployment rates, and suffer from the usual defects of matching models. We embed endogenous participation in a simple, tractable job market matching model, show analytically...
Persistent link: https://www.econbiz.de/10005537405
Due to increased technological change which lead to an increased demand for skilled workers, it becomes more and more difficult for low skilled workers to find a job. How should a society or political decision makers react? Recently, German politicians are engaged in a discussion about the...
Persistent link: https://www.econbiz.de/10005537408
Sudden and protracted oil-price increases are generally accompanied by economic contractions and high inflation. How should monetary policy react to oil-price shocks in order to minimize such adverse macroeconomic effects? We build a DSGE model characterized by two oil-importing countries and...
Persistent link: https://www.econbiz.de/10005537449
Many recent papers, following Gali (1999), have found a negative response of employment to a positive technology shock … identified as a permanent shock to labor productivity, contradicting the prediction of standard RBC models. In a recent paper …
Persistent link: https://www.econbiz.de/10005537464