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Assessing House Prices with Prudential and Valuation Measures

Andrle, Michal - 2019

In this paper we provide tools for assessing the house prices and housing valuation. Wedevelop two approaches: (i) borrowing capacity approach, and (ii) intrinsic value approach.The borrowing capacity of households, together with their down payment, implies how muchhousing they can attain. In...

Persistent link: https://www.econbiz.de/10012888689

Fundamental and Speculative Demands for Housing

Lian, Weicheng - 2019

This paper separates the roles of demand for housing services and belief about future house prices in a house price cycle, by utilizing a feature of user-cost-of-housing that it is sensitive to demand for housing services only. Optimality conditions of producing housing services determine...

Persistent link: https://www.econbiz.de/10012888765

Liquidity Management Under Fixed Exchange Rate with Open Capital Account

El Hamiani Khatat, Mariam - 2019

This paper introduces a theoretical framework for liquidity management under fixed exchange rate arrangement, derived from the price-specie flow mechanism of David Hume. The framework highlights that the risk of short-term money market rates un-anchoring from the uncovered interest rate parity...

Persistent link: https://www.econbiz.de/10012888769

Two-Sided Market, R&D and Payments System Evolution

Li, Bin (Grace) - 2019

It takes many years for more efficient electronic payments to be widely used, and the fees thatmerchants (consumers) pay for using those services are increasing (decreasing) over time. Weaddress these puzzles by studying payments system evolution with a dynamic model in a twosidedmarket setting....

Persistent link: https://www.econbiz.de/10012888773

Fiscal Redistribution and Social Welfare

Coady, David P. - 2019

Fiscal policy is a key tool for achieving distributional objectives in advanced economies. Thispaper embeds the discussion of fiscal redistribution within the standard social welfareframework, which lends itself to a transparent and practical evaluation of the extent anddeterminants of fiscal...

Persistent link: https://www.econbiz.de/10012889140

Determinants of Currency Composition of Reserves : A Portfolio Theory Approach with an Application to RMB

Lu, Yinqiu - 2019

The way central banks manage their foreign reserve assets has evolved over the past decades. One major trend is managing reserves in two or more tranches-liquidity tranche and investment tranche-especially for those with adequate reserves. Incorporating reserve tranching, we have developed in...

Persistent link: https://www.econbiz.de/10012889141

Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy

Caselli, Francesca - 2019

This paper estimates the causal effect of fiscal rules on fiscal balances in a panel of 142 countries over the period 1985-2015. Our instrumental variable strategy exploits the geographical diffusion of fiscal rules across countries. The intuition is that reforms in neighboring countries may...

Persistent link: https://www.econbiz.de/10012889142

Mr. Taylor and the Central Bank : Two Inference Exercises

Luna, Francesco - 2019

interested in identifying the Central Bank's behavior and one by the Central Bank, which tries to infer how the economy works and … theory to model these inference exercises and to assess their general possibility of success. So, is it possible to infer …/learn the central bank's policy rule? The answer is a qualified positive and depends on the 'complexity' of the economy and on …

Persistent link: https://www.econbiz.de/10012889157

Inequality of Opportunity, Inequality of Income and Economic Growth

Aiyar, Shekhar S. - 2019

We posit that the relationship between income inequality and economic growth ismediated by the level of equality of opportunity, which we identify with intergenerationalmobility. In economies characterized by intergenerational rigidities, an increase in incomeinequality has persistent...

Persistent link: https://www.econbiz.de/10012889158

Do Temporary Business Tax Cuts Matter? A General Equilibrium Analysis

Gbohoui, William - 2019

This paper develops a dynamic general equilibrium model to assess the effects oftemporary business tax cuts. First, the analysis extends the Ricardian equivalence result toan environment with production and establishes that a temporary tax cut financed by afuture tax-increase has no real effect...

Persistent link: https://www.econbiz.de/10012889161