Narrow search
Showing 1 - 10 of 646
Cover Image
Real Wage Rigidities and the Cost of Disinflations
Ascari, Guido - 2009
This paper analyzes the cost of disinflations under real wage rigidities in a micro-founded New Keynesian model. The consensus is that real wage rigidities can be a useful mechanism to induce the inflation persistence that is absent in the standard Calvo model. Real wage rigidities thus generate...
Persistent link: https://www.econbiz.de/10012766891
Cover Image
Envy, Guilt, and the Phillips Curve
Ahrens, Steffen - 2012
We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their...
Persistent link: https://www.econbiz.de/10013111206
Cover Image
Phillips Curves and Unemployment Dynamics : A Critique and a Holistic Perspective
Karanassou, Marika; Sala, Hector; Snower, Dennis J. - 2021
The conventional wisdom that inflation and unemployment are unrelated in the long-run implies the compartmentalisation of macroeconomics. While one branch of the literature models inflation dynamics and estimates the unemployment rate compatible with inflation stability, another one determines...
Persistent link: https://www.econbiz.de/10013317465
Cover Image
Structural and reduced approaches of the equilibrium rate of unemployment, a comparison between France and the United States
Heyer, Eric; Reynés, Frédéric; Sterdyniak, Henri - In: Economic modelling 24 (2007) 1, pp. 42-65
Persistent link: https://www.econbiz.de/10003408605
Cover Image
Productivity Growth and the Phillips Curve : A Reassessment of the US Experience
Karanassou, Marika - 2009
) shifts with productivity growth. On this basis we estimate a dynamic system of macrolabour equations to evaluate the slope of …-run. Furthermore, during the stagflating 70s, the productivity slowdown contributed substantially to the increases in both unemployment … monetary expansion and productivity speedup of the roaring 90s were both responsible for the significant lowering of the …
Persistent link: https://www.econbiz.de/10013158034
Cover Image
Real Wage Rigidities and the Cost of Disinflations
Ascari, Guido; Merkl, Christian - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
This paper analyzes the cost of disinflations under real wage rigidities in a micro-foundedNew Keynesian model. The consensus is that real wage rigidities can be a useful mechanismto induce the inflation persistence that is absent in the standard Calvo model...
Persistent link: https://www.econbiz.de/10005861857
Cover Image
A Theory of Price Adjustment Under Loss Aversion
Ahrens, Steffen - 2014
We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility gains from price decreases of equal magnitude. Price...
Persistent link: https://www.econbiz.de/10013054582
Cover Image
Hyperbolic Discounting and Positive Optimal Inflation
Graham, Liam - 2011
The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...
Persistent link: https://www.econbiz.de/10013125143
Cover Image
The Pass-Through of Exchange Rate in the Context of the European Sovereign Debt Crisis
Ben Cheikh, Nidhaleddine - 2015
This paper investigates whether exchange rate pass-through (ERPT) into import prices is a nonlinear phenomenon for five heavily indebted Euro area countries, namely the so-called GIIPS group (Greece, Ireland, Italy, Portugal, and Spain). Using logistic smooth transition models, we explore the...
Persistent link: https://www.econbiz.de/10013012797
Cover Image
Nonlinear Phillips curve, sacrifice ratio, and the natural rate of unemployment
Huh, Hyeon-seung; Jang, Inwon - In: Economic modelling 24 (2007) 5, pp. 797-813
Persistent link: https://www.econbiz.de/10003496155