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Appropriate Fiscal Policy Over the Business Cycle : Proper Stimulus Policies Can Work

Graves, Philip E. - 2010

Fiscal policy has become quite controversial in the post-Keynesian era, the debate over the Obama stimulus package being a contentious recent example. Some pundits go so far as to take the position that macroeconomic theory has failed to meaningfully progress in terms of providing useful...

Persistent link: https://www.econbiz.de/10013139182

Risk Pooling, Leverage, and the Business Cycle

Dindo, Pietro - 2020

mitigation to households by pooling the idiosyncratic risks of their investment activities. In contrast to previous studies, we …

Persistent link: https://www.econbiz.de/10012848320

Shocks, Frictions, and Inequality in US Business Cycles

Bayer, Christian - 2020

How much does inequality matter for the business cycle and vice versa? Using a Bayesian likelihood approach, we estimate a heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice between liquid and illiquid assets. The model enlarges the set of shocks and...

Persistent link: https://www.econbiz.de/10012841741

Perceived Uncertainty Shocks, Excess Optimism-Pessimism, and Learning in the Business Cycle

Chatterjee, Pratiti; Milani, Fabio - 2021

What are the effects of beliefs, sentiment, and uncertainty, over the business cycle? To answer this question, we develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are, instead, boundedly rational: they have a...

Persistent link: https://www.econbiz.de/10013315209

Risk Pooling, Leverage, and the Business Cycle

Dindo, Pietro; Modena, Andrea; Pelizzon, Loriana - 2019

This paper investigates the interdependence between the risk-pooling activity of the financial sector and: output, consumption, risk-free rate, and Sharpe ratio in a dynamic general equilibrium model of a productive economy. Due to their exposure to idiosyncratic shocks and market segmentation,...

Persistent link: https://www.econbiz.de/10012052878

Appropriate fiscal policy over the business cycle: Proper stimulus policies can work

Graves, Philip E. - 2010

Persistent link: https://www.econbiz.de/10010270872

Investment Under Rational Inattention : Evidence from US Sectoral Data

Zorn, Peter - 2020

Macroeconomic and sector-specific shocks exert differential effects on investment in disaggregate sectoral data. The … monotonically. A calibrated model of investment with convex capital adjustment costs and rational inattention explains these … features of the data. The model matches the empirical responses of sectoral investment because learning about shocks generates …

Persistent link: https://www.econbiz.de/10012827670

Inflation and Output Dynamics in a Model with Labor Market Search and Capital Accumulation

Heer, Burkhard; Maußner, Alfred - 2021

response to an interest shock is found to be too large and no longer hump-shaped in this case. In addition we find that the … response of output to a technology shock can only be reconciled with empirical findings if either the adjustment of the …

Persistent link: https://www.econbiz.de/10013316997

Heterogeneous Expectations, Indeterminacy, and Postwar US Business Cycles

Ilabaca, Francisco - 2020

This paper estimates a New Keynesian model extended to include heterogeneous expectations, to revisit the evidence that postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot-driven fluctuations in the pre-1979 sample, with a switch...

Persistent link: https://www.econbiz.de/10012836715

Sectoral Okun's Law and Cross-Country Cyclical Differences

Goto, Eiji - 2020

We estimate Okun's law, the negative relationship between output and the unemployment rate, at the sector level for the US, the UK, Japan, and Switzerland to test several hypotheses that may explain why the aggregate Okun's coeffcients are different across countries. Specifically, we show that...

Persistent link: https://www.econbiz.de/10012841145