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The optimal inflation rate and firm-level productivity growth
Weber, Henning - 2012
Empirical data show that firms tend to improve their ranking in the productivity distribution over time. A stickyprice model with firm-level productivity growth fits this data and predicts that the optimal long-run inflation rate is positive and between 1.5% and 2% per year. In contrast, the...
Persistent link: https://www.econbiz.de/10010286841
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Liquidity Traps, Learning and Stagnation
Evans, George W.; Guse, Eran; Honkapohja, Seppo - 2007
We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead...
Persistent link: https://www.econbiz.de/10010260581
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Is forward-looking inflation targeting destabilizing? The role of policy's response to current output under endogenous investment
Huang, Kevin X. D.; Meng, Qinglai - 2007
in response solely to future inflation induce real indeterminacy of equilibrium. Applying the Samuelson … by itself has a quantitatively negligible effect and almost all strict inflation-targeting rules lead to indeterminacy … stickiness, indeterminacy is much less likely to occur as policy also responds to output. With estimated labor supply elasticity …
Persistent link: https://www.econbiz.de/10010260586
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Intergenerational redistribution with asymmetric information: The case of non-observable savings
Lorz, Jens Oliver - 1999
This paper analyzes intergenerational redistribution in a 2-period overlapping- generations model that allows for heterogeneous labor productivities within the working generation. In each period, the government decides about redistributive transfers to maximize the aggregate utility of the...
Persistent link: https://www.econbiz.de/10010331072
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The political economy of intra- and intergenerational redistribution with asymmetric information
Lorz, Jens Oliver - 1999
In this paper redistribution policy is analyzed in a 2-period overlapping generations model with heterogeneous individuals and asymmetric information between the government and the private sector. Individuals of the same generation differ with respect to their labor productivity. In each period,...
Persistent link: https://www.econbiz.de/10010275329
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The price-price Phillips curve in small open economies and monetary unions: Theory and empirics
Vaona, Andrea - 2014
This paper extends the efficiency wages/partially adaptive expectations Phillips curve, otherwise known as the price-price Phillips curve, from a closed economy context to an open economy one with both commodity trade and capital mobility. We also consider the case of a monetary union (a...
Persistent link: https://www.econbiz.de/10010332011
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Firm size distribution and employment fluctuations: Theory and evidence
Görg, Holger; Henze, Philipp; Jienwatcharamongkhol, Viroj - 2016
This paper studies the effect of the firm-size distribution on the relationship between employment and output. We construct a theoretical model, which predicts that changes in demand for industry output have larger effects on employment in industries characterised by a distribution that is more...
Persistent link: https://www.econbiz.de/10011561853
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Hyperbolic discounting and the Phillips curve
Graham, Liam; Snower, Dennis J. - 2007
Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.
Persistent link: https://www.econbiz.de/10010272966
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Increasing returns to scale and the long-run Phillips curve
Vaona, Andrea; Snower, Dennis J. - 2006
A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.
Persistent link: https://www.econbiz.de/10010273150
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The efficiency wages Phillips curve: Closed economy versus open economy
Vaona, Andrea - 2011
The paper extends the efficiency wages Phillips curve from a closed economy context to an open economy one with both commodity trade and capital mobility. Opening the trade account does not alter the slope of the Phillips curve, but it makes its position a function of the change of foreign and...
Persistent link: https://www.econbiz.de/10010277343