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Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts

Dixon, Huw; Kara, Engin - 2007

We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of di§erent lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of...

Persistent link: https://www.econbiz.de/10010322772

Towards Keynesian DSGD (isequilibrium) Modelling: Real-Financial Market Interactions with Heterogeneous Expectations Dynamics

Charpe, Matthieu; Flaschel, Peter; Hartmann, Florian; … - 2012

We consider an alternative modelling approach to the mainstream DSGE paradigm, namely basically a Dynamic Stochastic General Disequilibrium model of continuous adjustment processes on interacting real and financial markets. We introduce heterogeneous capital gain expectations (chartists and...

Persistent link: https://www.econbiz.de/10010460516

Real business cycles with a human capital investment sector and endogenous growth: Persistence, volatility and labor puzzles

Dang, Jing; Gillman, Max; Kejak, Michal - 2011

A positive joint two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that release leisure time and initially raises the relative price of human capital investment so as to favor it over goods production. This enables a basic RBC model, modified by...

Persistent link: https://www.econbiz.de/10010288869

Aggregate Demand, Aggregate Supply, and Endogenous Growth: A Synthetic neo-Kaleckian Model

Palley, Thomas I. - 2010

whereby unemployment affects investment and growth. The model generates a growth unemployment rate trade-off. A reduced … propensity to save raises growth but it also raises the unemployment rate because of induced technological progress. This … unemployment affects income distribution; introduction of a Phillips curve and inflation effects; and introduction of demand growth …

Persistent link: https://www.econbiz.de/10010460491