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Secular Stagnation : Insights from a New Keynesian Model with Hysteresis Effects
Van Aarle, Bas - 2016
hysteresis in potential output in a New-Keynesian model that is extended with endogenous potential output. To do so, a number of … simulations of relevant scenarios is undertaken. It is demonstrated that extending the New-Keynesian model with hysteresis has a …
Persistent link: https://www.econbiz.de/10012994794
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Monetary Persistence and the Labor Market : A New Perspective
Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - 2021
In this paper we propose a novel way to model the labor market in the context of a New-Keynesian general equilibrium model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to replicate many important stylized facts of the business...
Persistent link: https://www.econbiz.de/10013316264
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Fiscal Transfers in a Monetary Union with Exit Option
Hefeker, Carsten - 2015
It is widely debated whether a monetary union has to be accompanied by a fiscal transfer scheme to accommodate asymmetric shocks. We build a model of a monetary union with a central bank and two heterogeneous countries that are linked by a fiscal transfer scheme with repercussions on monetary...
Persistent link: https://www.econbiz.de/10013025966
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Sovereign Default Risk and Banks in a Monetary Union
Uhlig, Harald - 2013
This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank, and that their sovereign partially backs up any...
Persistent link: https://www.econbiz.de/10013076729
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Strategic Interactions between Fiscal and Monetary Authorities in a Multi-Country New-Keynesian Model of a Monetary Union
Michalak, Tomasz - 2013
In this paper we consider a number of key issues related to the policy coordination in a monetary union that has been recently discussed in the literature. To this end we propose a multi-country New-Keynesian model of a monetary union cast in the framework of linear quadratic differential games....
Persistent link: https://www.econbiz.de/10012753234
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Export Hysteresis, Capacity Constraints and Uncertainty : A Smooth-Transition Analysis for Euro Area Member Countries
Belke, Ansgar Hubertus - 2017
We argue that, under certain conditions described by a sunk cost hysteresis model, firms consider exports as a … evidence of the importance of sunk costs and hysteresis in international trade in these EMU member countries. What is more, our … and Portugal) the results underscore the empirical validity of the export hysteresis under uncertainty model …
Persistent link: https://www.econbiz.de/10012947452
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Persistence and Cycles in the US Federal Funds Rate
Caporale, Guglielmo Maria - 2013
This paper uses long-range dependence techniques to analyse two important features of the US Federal Funds effective rate, namely its persistence and cyclical behaviour. It examines annual, monthly, bi-weekly and weekly data, from 1954 until 2010. Two models are considered. One is based on an...
Persistent link: https://www.econbiz.de/10013089178
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Aggregation in Large Dynamic Panels
Pesaran, M. Hashem - 2015
This paper considers the problem of aggregation in the case of large linear dynamic panels, where each micro unit is potentially related to all other micro units, and where micro innovations are allowed to be cross sectionally dependent. Following Pesaran (2003), an optimal aggregate function is...
Persistent link: https://www.econbiz.de/10013038262
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Policy Persistence and Rent Extraction
Friedrich, Silke - 2021
The existing literature has shown that special interest groups can have both growth enhancing and retarding effects on an economy. In either case it is always assumed that the nature of the special interest groups remains constant over time. The hypothesis of this paper is that a dynamic...
Persistent link: https://www.econbiz.de/10013315741
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Worker Identity, Employment Fluctuations and Stabilization Policy
Lechthaler, Wolfgang; Snower, Dennis J. - 2021
This paper provides a model of “social hysteresis,” whereby long, deep recessions demotivate workers and thereby lead …
Persistent link: https://www.econbiz.de/10013315765