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not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …
Persistent link: https://www.econbiz.de/10014534470
We develop a three-stage model of abatement technology search, adoption, and deployment. Using this model, which draws … on search theory tools more frequently used in labour and monetary economics, we compare market-based and command …-and-control pollution control instruments with respect to the incentives each provides for abatement technology search and adoption …
Persistent link: https://www.econbiz.de/10010352355
Increased competition tends to benefit all buyers with increasing product variety and decreasing prices. However, if local and external market channels compete for the same class of products, increased competition from the external market crowds out local variety. Under local monopoly, local...
Persistent link: https://www.econbiz.de/10012052789
Channel systems for conducting monetary policy are becoming increasingly popular. Despite their popularity, the consequences of implementing policy with a channel system are not well understood. We develop a general equilibrium framework of a channel system and investigate the optimal policy. A...
Persistent link: https://www.econbiz.de/10010264077
equilibrium search model of the labor market with an endogenous number of contacts between workers and firms. Workers contact … estimated parameter values welfare is improved if unemployed workers increase their search intensity. …
Persistent link: https://www.econbiz.de/10010274755
Algorithm-based decision support systems play an increasingly important role in decisions involving exploration tasks, such as product searches, portfolio choices, and human resource procurement. These tasks often involve a trade-off between exploration and exploitation, which can be highly...
Persistent link: https://www.econbiz.de/10014290098
We propose a theoretical explanation for the so-called "beauty premium". Our explanation is based entirely on search … interaction between frictional labour and marriage markets and establish the existence of a search equilibrium characterised by …
Persistent link: https://www.econbiz.de/10010500407
We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show that this slight departure from rationality has important implications for policy design. The central bank faces a new intertemporal trade-off, not present under rational...
Persistent link: https://www.econbiz.de/10010271452
This paper investigates the heterogeneity of monetary policy transmission under time-varying disagreement regimes using a threshold VAR. Empirically, I establish that during times of high disagreement, prices respond more sluggishly in response to monetary shocks. These stickier prices cause a...
Persistent link: https://www.econbiz.de/10012179755
We provide evidence on narratives about the macroeconomy—the stories people tell to explain macroeconomic phenomena—in the context of a historic surge in inflation. We measure economic narratives in open-ended survey responses and represent them as Directed Acyclic Graphs. We apply this...
Persistent link: https://www.econbiz.de/10014377509