An important topic in recent macroeconomic literature is the potential effects of noise, or expectational, shocks on aggregates. Most of the past analysis has used some derivative of a New Keynesian model with labor as the only input, but doing so fails to consider that some input decisions may...

In this paper, we empirically examine a heterogenous bounded rationality version of a hybrid New-Keynesian model. The model is estimated via the simulated method of moments using Euro Area data from 1975Q1 to 2009Q4. It is generally assumed that agents' beliefs display waves of optimism and...

Abstract The utilization of a real-interest rate rule in Romer’s new-Keynesian IS-MP approach, which is consistent with new synthesis intertemporal baseline macroeconomic models, provides a contemporary alternative to the standard old-Keynesian IS-LM model and moves back the emphasis on...

This paper considers a two-stage game, where in the first stage, two firms bid non-cooperatively for a production technique that leads to a reduction in cost. Following the auction in the second stage of the game these firms compete against each other in a duopolistic industry. The amount of...

This paper uses a model (consisting of a linear estimate of a demand curve, a linear quadratic cost curve and a logistic diffusion curve) and four types of imperfectly competitive behaviour — monopolistic intertemporal profit maximization, a dynamic Bertrand oligopoly, and a duopolistic...

A new theory of capitalism is suggested. Its key moments and general logic are presented. This theory is based on the distinction between two market types – the simple commodity market and the capitalist one. Disequilibrium and "imperfect competition" are admitted to be a functional norm of...

A new theory of capitalism is suggested. Its key moments and general logic are presented. This theory is based on the distinction between two market types – the simple commodity market and the capitalist one. Disequilibrium and "imperfect competition" are admitted to be a functional norm of...

The paper attempts to indentify the constraints to growth in Guyana using the Hausmann et al (2005) methodology. Although Guyana suffers from low domestic savings and high interest rate spreads, the paper argues that high cost of finance is a non-binding constraint on entrepreneurial activity....

A new heterodox theory of capitalism is suggested. Its key moments and general logic are presented. Capitalism is considered as a special case of market, as its higher form. Disequilibrium and "imperfect competition" are admitted to be a functional norm of capitalism. Respectively, an...

A new heterodox theory of market and capitalism is suggested. Its key moments and general logic are presented. The theory is based on the distinction between two market types – the simple commodity market and the capitalist one. Disequilibrium and "imperfect competition" are admitted to be a...