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Trade Costs and Strategic Investment in Infrastructure in a Dynamic Global Economy with Symmetric Countries
Yanase, Akihiko; Van Long, Ngo - 2021
investment in an international infrastructure capital, the stock of which accumulates over time. Depending on the trade costs and … consideration, the governments carry out a dynamic game of public investment. We show that the dynamic equilibrium of the policy …
Persistent link: https://www.econbiz.de/10013314918
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Inflation and Output Dynamics in a Model with Labor Market Search and Capital Accumulation
Heer, Burkhard; Maussner, Alfred - 2021
In a sticky-price model with labor market search and habit persistence, Walsh (2005) shows that inertia in the interest rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show that this finding is sensitive with regard to the...
Persistent link: https://www.econbiz.de/10013316997
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The Impact of Price Adjustment Costs on Price Dispersion in E-Commerce
Böheim, René - 2019
We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to instrument for potential endogeneity that might result from the selection of firms to certain product markets. We find that greater price adjustment costs result in greater price...
Persistent link: https://www.econbiz.de/10012892080
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Congestion in the Electricity Transmission System Redistributes Pollution Across Long Distances
Johnson, Erik - 2020
Electricity transmission redistributes environmental impacts across space. We exploit episodes of high electricity transmission system congestion to explore changes in ambient concentrations of air pollutants in the eastern United States. Reducing electricity system congestion decreases ozone...
Persistent link: https://www.econbiz.de/10012825399
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Welfare Losses of Road Congestion
Russo, Antonio - 2019
We estimate the marginal external congestion cost of motor-vehicle travel for Rome, Italy, using a methodology that accounts for hypercongestion (a situation where congestion decreases a road’s throughput). We show that the external cost – even when roads are not hypercongested...
Persistent link: https://www.econbiz.de/10012867018
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Rational Drivers and the Choice between Congestion Tolls and Tradeable Permits : A Political Economy Model
Borger, Bruno De; Glazer, Amihai; Proost, Stef - 2021
People who anticipate the introduction of a policy can adapt their behavior, perhaps in ways that make the policy ineffective and exacerbate the problem to be addressed. This paper develops a political economy model to study strategic behavior related to the introduction of congestion policies,...
Persistent link: https://www.econbiz.de/10013250739
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The irreversibility premium
Chirinko, Robert S.; Schaller, Huntley - 2008
When investment is irreversible, theory suggests that firms will be "reluctant to invest." This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We …
Persistent link: https://www.econbiz.de/10010264335
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The marginal product of capital: a persistent international puzzle
Chirinko, Robert S.; Mallick, Debdulal - 2008
Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the core implications of the neoclassical framework. Lucas (1990) and many subsequent studies have examined reasons for this MPK differential. In a recent contribution, Caselli and...
Persistent link: https://www.econbiz.de/10010264438
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Optimal Carbon Pricing in General Equilibrium : Temperature Caps and Stranded Assets in an Extended Annual DSGE Model
van der Ploeg, Rick; Rezai, Armon - 2021
The general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical progress, and...
Persistent link: https://www.econbiz.de/10013225748
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Micro Jumps, Macro Humps : Monetary Policy and Business Cycles in an Estimated Hank Model
Auclert, Adrien - 2020
shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …
Persistent link: https://www.econbiz.de/10012842965