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Political Stasis or Protectionist Rut? Policy Mechanisms for Trade Reform in a Democracy
Willmann, Gerald; Blanchard, Emily J. - 2007
This paper analyzes the dynamics of trade policy reform under democracy. In an overlapping generations model, heterogeneous agents may acquire skills when young, thereby determining the skill composition of their cohort. Current and anticipated trade policies influence education decisions, and...
Persistent link: https://www.econbiz.de/10010296285
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The Bank, the Bank-Run, and the Central Bank: The Impact of Early Deposit Withdrawals in a New Keynesian Framework
Totzek, Alexander - 2008
Currently, private trust in commercial banks declines as a consequence of today´s financial crisis. As past crises, e.g. the Asian crisis, show, the loss of confidence in the financial sector typically causes private agents to withdraw their capital from financial institutions. Thus, the...
Persistent link: https://www.econbiz.de/10010298768
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Banks and early deposit withdrawals in a new Keynesian framework
Totzek, Alexander - 2009
When the current financial crisis has widened to a global economic crisis an urgent call for implementing financial markets and financial institutions in business cycle models emerged. By modelling commercial banks as a third type of economic agent, we are able to implement the feature of early...
Persistent link: https://www.econbiz.de/10010299743
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Envy, guilt, and the Phillips curve
Ahrens, Steffen; Snower, Dennis J. - 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/10010307860
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Agent-based macroeconomics - a baseline model
Lengnick, Matthias - 2011
This paper develops a baseline agent-based macroeconomic model and contrasts it with the common dynamic stochastic general equilibrium approach. Although simple, the model can reproduce a lot of the stylized facts of business cycles. The author argues that agent-based modeling is an adequate...
Persistent link: https://www.econbiz.de/10010304486
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The interaction between monetary and macroprudential policy: Should central banks "lean against the wind" to foster macrofinancial stability?
Krug, Sebastian - 2015
unburdened policy instrument is able to dampen the build-up of financial imbalances by restricting credit to the unsustainable …
Persistent link: https://www.econbiz.de/10011405338
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A theory of price adjustment under loss aversion
Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 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 … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …
Persistent link: https://www.econbiz.de/10010336108
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Shadow banking, financial regulation and animal spirits: An ACE approach
Krug, Sebastian; Wohltmann, Hans-Werner - 2016
materializes in increasing default rates and a higher volatility in the credit-to-GDP gap. However, experiments with a full …
Persistent link: https://www.econbiz.de/10011485878
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A minimal noise trader model with realistic time series properties
Alfarano, Simone; Lux, Thomas - 2006
Simulations of agent-based models have shown that the stylized facts (unit-root, fat tails and volatility clustering) of financial markets have a possible explanation in the interactions among agents. However, the complexity, originating from the presence of non-linearity and interactions, often...
Persistent link: https://www.econbiz.de/10010295000
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Microscopic models of financial markets
Samanidou, Egle; Zschischang, Elmar; Stauffer, Dietrich; … - 2006
This review deals with several microscopic models of financial markets which have been studied by economists and physicists over the last decade: Kim-Markowitz, Levy-Levy-Solomon, Cont-Bouchaud, Solomon-Weisbuch, Lux-Marchesi, Donangelo-Sneppen and Solomon-Levy-Huang. After an overview of...
Persistent link: https://www.econbiz.de/10010295005