Showing 81 - 90 of 192
This paper shows that the Ricardian Equivalence proposition can continue to hold when expectations are not rational and are instead formed using adaptive learning rules. In temporary equilibrium, with given expectations, Ricardian Equivalence holds under the standard conditions for its validity...
Persistent link: https://www.econbiz.de/10013143807
We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top of risk-based capital requirements, as in Basel III. For the current 3% LRR, both low-risk and high-risk loan rates and volumes remain essentially unchanged, because banks...
Persistent link: https://www.econbiz.de/10013124967
The welfare cost of random consumption fluctuations is known from De Santis (2007) to be increasing in the level of individual consumption risk in the economy. It is also known from Barillas et al. (2009) to increase if agents in the economy care about robustness to model misspecification. In...
Persistent link: https://www.econbiz.de/10013102926
A unique Finnish household-level data from 1994 to 2009 allow us to measure how households' financial expectations are related to the subsequent outcomes. We use the difference between the two to measure forecast errors and household optimism and link the errors to households' borrowing...
Persistent link: https://www.econbiz.de/10013104174
This paper uses entrepreneurs' survival expectations around the time of market entry and subsequent venture exits to study entrepreneurial optimism. Using data on a large number of nascent entrepreneurs in the US and start-ups in Finland, we find that new entrepreneurs survival beliefs are on...
Persistent link: https://www.econbiz.de/10013104176
Disinflationary episodes are a valuable source of information for economic agents trying to learn about the economy. In …
Persistent link: https://www.econbiz.de/10013107619
The Hilbert-Huang transform (HHT) was developed late last century but has still to be introduced to the vast majority of economists. The HHT transform is a way of extracting the frequency mode features of cycles embedded in any time series using an adaptive data method that can be applied...
Persistent link: https://www.econbiz.de/10013153593
We consider the impact of mandatory information disclosure on bank safety in a spatial model of banking competition in …
Persistent link: https://www.econbiz.de/10013153603
We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja, European Economic Review (2008), we find that under normal monetary and fiscal policy the intended...
Persistent link: https://www.econbiz.de/10013153604
This paper re-examines the VAR evidence on the price puzzle and proposes a new theoretical interpretation. Using actual data and two identification strategies based on zero restrictions and model-consistent sign restrictions, we find that the positive response of prices to a monetary policy...
Persistent link: https://www.econbiz.de/10013153605