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World Shocks, World Prices, and Business Cycles : An Empirical Investigation

Fernández, Andrés - 2016

intratemporal relative price such as the terms of trade and possibly an intertemporal price such as the world interest rate. This … paper presents an empirical framework in which multiple commodity prices and the world interest rate transmit world … disturbances. Estimates on a panel of 138 countries over the period 1960-2015 indicate that world shocks explain on average 33 …

Persistent link: https://www.econbiz.de/10012455847

Deep Habits and the Dynamic Effects of Monetary Policy Shocks

Ravn, Morten O; Schmitt-Grohé, Stephanie; Uribe, Martín; … - C.E.P.R. Discussion Papers - 2009

This paper introduces deep habits into a sticky-price sticky-wage economy and asks whether the countercyclical markup movements induced by deep habits is helpful for accounting for the dynamic effects of monetary policy shocks. We find that this is the case: When allowing for deep habits, the...

Persistent link: https://www.econbiz.de/10005791798

A Model-Based Evaluation of the Debate on the Size of the Tax Multiplier

Chahrour, Ryan; Schmitt-Grohé, Stephanie; Uribe, Martín - C.E.P.R. Discussion Papers - 2010

The SVAR and narrative approaches to estimating tax multipliers deliver significantly different results. The former yields multipliers of about 1 percent, whereas the latter produces much larger multipliers of about 3 percent. The SVAR and narrative approaches differ along two important...

Persistent link: https://www.econbiz.de/10008554233

A Model-Based Evaluation of the Debate on the Size of the Tax Multiplier

Chahrour, Ryan - 2010

Persistent link: https://www.econbiz.de/10012462488

Heterogeneous Downward Nominal Wage Rigidity : Foundations of a Static Wage Phillips Curve

Schmitt-Grohé, Stephanie; Uribe, Martín - National Bureau of Economic Research - 2022

We introduce a form of downward nominal wage rigidity that can vary in intensity across a continuum of labor varieties. The model delivers a static wage Phillips curve linking current wage inflation to current unemployment. For standard parameterizations, the dynamics of the model are...

Persistent link: https://www.econbiz.de/10013477266

What's News in Business Cycles

Schmitt-Grohé, Stephanie; Uribe, Martín - C.E.P.R. Discussion Papers - 2012

In the context of a dynamic, stochastic, general equilibrium model, we perform classical maximum-likelihood and Bayesian estimations of the contribution of anticipated shocks to business cycles in the postwar United States. Our identification approach relies on the fact that forward-looking...

Persistent link: https://www.econbiz.de/10011083924

The Making Of A Great Contraction With A Liquidity Trap and A Jobless Recovery

Schmitt-Grohé, Stephanie; Uribe, Martín - C.E.P.R. Discussion Papers - 2012

The great contraction of 2008 pushed the U.S. economy into a protracted liquidity trap (i.e., a long period with zero nominal interest rates and inflationary expectations below target). In addition, the recovery was jobless (i.e., output growth recovered but unemployment lingered). This paper...

Persistent link: https://www.econbiz.de/10011084691

Pricing to Habits and the Law of One Price

Ravn, Morten O; Schmitt-Grohé, Stephanie; Uribe, Martín - C.E.P.R. Discussion Papers - 2007

This paper proposes a novel international transmission mechanism based on the assumption of deep habits. The term deep habits stands for a preference specification according to which consumers form habits on a good-by-good basis. Under deep habits, firms face more elastic demand functions in...

Persistent link: https://www.econbiz.de/10005791272

What’s News in Business Cycles

Schmitt-Grohé, Stephanie; Uribe, Martín - C.E.P.R. Discussion Papers - 2009

In this paper, we perform a structural Bayesian estimation of the contribution of anticipated shocks to business cycles in the postwar United States. Our theoretical framework is a real-business-cycle model augmented with four real rigidities: investment adjustment costs, variable capacity...

Persistent link: https://www.econbiz.de/10005656380

What Do Long Data Tell Us About the Inflation Hike Post COVID-19 Pandemic?

Schmitt-Grohé, Stephanie; Uribe, Martín - National Bureau of Economic Research - 2022

To what extent is the recent spike in inflation driven by a change in its permanent component? We estimate a semi-structural model of output, inflation, and the nominal interest rate in the United States over the period 1900-2021. The model predicts that between 2019 and 2021 the permanent...

Persistent link: https://www.econbiz.de/10013362011