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The Structure of Simple 'New Economic Geography' Models
Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2004
This paper shows that the mathematical structure of the most widely used New Economic Geography models is the same, irrespective of the underlying agglomeration mechanism assumed (factor migration, input-output linkages, endogenous capital accumulation). This enables us to provide analytical...
Persistent link: https://www.econbiz.de/10005114389
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On the Indeterminacy of Determinacy and Indeterminacy
Beyer, Andreas; Farmer, Roger E A - C.E.P.R. Discussion Papers - 2003
A number of authors have attempted to test whether the US economy is in a determinate or an indeterminate equilibrium … provide examples of two economic models. Model 1 displays an indeterminate equilibrium, driven by sunspots. Model 2 displays a … determinate equilibrium driven by fundamentals. Both models have the same likelihood function and are therefore observationally …
Persistent link: https://www.econbiz.de/10005666730
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On the Many Kinds of Growth
Eckstein, Zvi; Foulides, Costas; Kollintzas, Tryphon - C.E.P.R. Discussion Papers - 1991
equilibrium model. Endogenous growth can be engendered by internal constant returns to scale or by external increasing returns to … for a recursive competitive equilibrium. We show how the different sources of growth combine to generate a plethora of … the social optimum as a recursive competitive equilibrium. …
Persistent link: https://www.econbiz.de/10005789086
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Balanced Budget Rules and Aggregate Instability: The Role of Consumption Taxes
Giannitsarou, Chryssi - C.E.P.R. Discussion Papers - 2006
It is known that, in the context of a real business cycle model with constant returns to scale and a balanced budget fiscal policy rule, steady state indeterminacy may arise as a result of endogenous labor income tax rates. In this paper, it is shown that when the government finances its...
Persistent link: https://www.econbiz.de/10005792344
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Optimal Target Criteria for Stabilization Policy
Giannoni, Marc; Woodford, Michael - C.E.P.R. Discussion Papers - 2010
) consistent with the model's structural equations, (ii) strong enough to imply a unique equilibrium, and (iii) optimal, in the …
Persistent link: https://www.econbiz.de/10008468673
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Complementarities and Games: New Developments
Vives, Xavier - C.E.P.R. Discussion Papers - 2004
The theory of monotone comparative statics and supermodular games is presented as the appropriate tool to model complementarities. The approach, which has not yet been fully incorporated into the standard toolbox of researchers, makes the analysis intuitive and simple, helps in deriving new...
Persistent link: https://www.econbiz.de/10005123543
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Indeterminacy with Small Externalities: The Role of Non-Separable Preferences
Lloyd-Braga, Teresa; Nourry, Carine; Venditti, Alain - C.E.P.R. Discussion Papers - 2006
In this paper we consider a Ramsey one-sector model with non-separable homothetic preferences, endogenous labour and productive external effects arising from average capital and labour. We show that indeterminacy cannot arise when there are only capital externalities but that it does when there...
Persistent link: https://www.econbiz.de/10005124153
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What We Don't Know About the Monetary Transmission Mechanism and Why We Don't Know It
Beyer, Andreas; Farmer, Roger E A - C.E.P.R. Discussion Papers - 2004
We study identification in a class of linear rational expectations models. For any given exactly identified model, we provide an algorithm that generates a class of equivalent models that have the same reduced form. We use our algorithm to show that a model proposed by Benhabib and Farmer [1] is...
Persistent link: https://www.econbiz.de/10005124235
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Indeterminacy in Dynamic Models: When Diamond Meets Ramsey
Lloyd-Braga, Teresa; Nourry, Carine; Venditti, Alain - C.E.P.R. Discussion Papers - 2005
In this paper, we consider an aggregate overlapping generations model with endogenous labour, consumption in both periods of life, homothetic preferences and productive external effects coming from the average capital and labour. We show that under realistic calibrations of the parameters, in...
Persistent link: https://www.econbiz.de/10005136695
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Aggregate Comparative Statics
Acemoglu, Daron; Jensen, Martin Kaae - C.E.P.R. Discussion Papers - 2009
In aggregative games, each player's payoff depends on her own actions and an aggregate of the actions of all the players (for example, sum, product or some moment of the distribution of actions). Many common games in industrial organization, political economy, public economics, and...
Persistent link: https://www.econbiz.de/10005067446