In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework.Learning about the transmission process of monetary policy is introduced by having heterogeneous agents - i.e. the central bank and private agents - who have different...

A major lesson of the recent financial crisis is that the interbank lending market is crucial for banks facing large uncertainty regarding their liquidity needs. This paper studies the efficiency of the interbank lending market in allocating funds. We consider two different types of liquidity...

We study the bond yield conundrum in a macro-finance framework. Building upon a exible and non-structural macro-finance model, we test the hypothesis that the bond yield conundrum is connected to various sources of uncertainty in the financial markets. Moreover we explicitly test for the role of...

In this paper we analyze disinflation in two environments.One in which the central bank has perfect knowledge, in the sense that it understands and observes the process by which private sector inflation expectations are generated, and one in which the central bank has to learn the private sector...

In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework.We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for active learning possibilities has e®ects on the...

In the last decade, the number of logistic service providers located in clusters across Europe has increased substantially. Because location choice models in logistics studies are not able to give a satisfactory explanation for this phenomenon, various spatial economic concepts are studied in...

This paper shows how a brain drain - the emigration of agents with a relatively high level of human capital in an economy - can paradoxically increase the productivity of an economy where productivity is a function of the average level of human capital. The model uses Galor and Tsiddon's model...

In the context of an overlapping generations model with intragenerational inequality and majority voting, I study how the taxation of the old and retired generation is affected when the population growth rate changes. A fall in the birth rate leads to two opposite effects. On the one hand, the...