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Health Capital Provision and Human Capital Accumulation

Azarnert, Leonid V. - 2020

This article analyzes the effect of public policy intervention in the production of health capital on fertility, private investment in children's health and education and human capital accumulation. I have used a growth model with endogenous fertility, in which the usual parental trade-off...

Persistent link: https://www.econbiz.de/10012840695

Rotemberg and Imperfect Common Knowledge : A Solution Algorithm

Šauer, Radek - 2020

This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common … knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices … algorithm has to search for the policy function of the aggregate price and for the policy function of the firm-specific price …

Persistent link: https://www.econbiz.de/10012841148

Signaling and Employer Learning with Instruments

Aryal, Gaurab - 2020

The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning...

Persistent link: https://www.econbiz.de/10012841583

Optimal Redistributive Wealth Taxation When Wealth is More than Just Capital

Franks, Max - 2020

We show how normative standpoints determine optimal taxation of wealth. Since wealth is not equal to capital, we find very different welfare implications of land rent-, bequest- and capital taxation. It is mainly land rents that should be taxed. We develop an overlapping generations model with...

Persistent link: https://www.econbiz.de/10012841621

Minimum Wage, Trade and Unemployment in General Equilibrium

Marjit, Sugata - 2020

The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...

Persistent link: https://www.econbiz.de/10012841731

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

A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers

Kokovin, Sergey G. - 2020

Our novel approach to modeling monopolistic competition with heterogeneous consumers involves a space of characteristics of a differentiated good (consumers' ideal points), alike Hotelling (1929). Firms have heterogeneous costs à la Melitz (2003). In addition to price setting, each firm also...

Persistent link: https://www.econbiz.de/10012841747

How Exporters Grow

Fitzgerald, Doireann - 2020

We show that in successful episodes of export market entry, there are statistically and economically significant post-entry dynamics of quantities, but no post-entry dynamics of markups. This suggests that shifts in demand play an important role in successful entry, but that firms do not use...

Persistent link: https://www.econbiz.de/10012841929

When a Nudge Backfires : Combining (Im)Plausible Deniability with Social and Economic Incentives to Promote Behavioral Change

Bolton, Gary - 2020

Both theory and recent empirical evidence on nudging suggest that observability of behavior acts as an instrument for …

Persistent link: https://www.econbiz.de/10012842390

Real-Time Forecasting Using Mixed-Frequency Vars with Time-Varying Parameters

Heinrich, Markus - 2020

This paper provides a detailed assessment of the real-time forecast accuracy of a wide range of vector autoregressive models (VAR) that allow for both structural change and indicators sampled at different frequencies. We extend the literature by evaluating a mixed-frequency time-varying...

Persistent link: https://www.econbiz.de/10012842676