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The Anatomy of Sentiment-Driven Fluctuations
Acharya, Sushant - 2017
We show that sentiments - self-fulfilling changes in beliefs that are orthogonal to fundamentals - can drive persistent aggregate fluctuations under rational expectations. Such fluctuations can occur even in the absence of any exogenous aggregate fundamental shocks. In addition, sentiments also...
Persistent link: https://www.econbiz.de/10012963733
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Aggregate Demand and Supply
Farmer, Roger E. A. - 2010
This paper is part of a broader project that provides a microfoundation to the General Theory of J.M. Keynes. I call … this project 'old Keynesian economics' to distinguish it from new-Keynesian economics, a theory that is based on the idea … definitions of aggregate demand and supply found in the General Theory through the lens of a search theory of the labor market. I …
Persistent link: https://www.econbiz.de/10012759829
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Uncertainty and Sentiment-Driven Equilibria
Benhabib, Jess - 2013
We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model...
Persistent link: https://www.econbiz.de/10013078372
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An Aggregate Demand - Aggregate Supply Analysis of Japanese Monetary Policy, 1973-1990
West, Kenneth D. - 2021
An aggregate demand - aggregate supply framework is used to analyze the effects of Japanese monetary policy, 1973:1-1990:8. It is found that money supply shocks contribute relatively little to output variability over the sample as a whole. Nor do these shocks seem to be particularly marked...
Persistent link: https://www.econbiz.de/10013311642
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Wedges, Wages, and Productivity Under the Affordable Care Act
Mulligan, Casey B. - 2013
Our paper documents the large labor market wedges created by taxes, subsidies, and regulations included in the Affordable Care Act. The law changes terms of trade in both goods and factor markets for firms offering health insurance coverage. We use a multi-sector (intra-national) trade model to...
Persistent link: https://www.econbiz.de/10013071301
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The Arrival of Fast Internet and Employment in Africa
Hjort, Jonas; Poulsen, Jonas - 2021
To show how fast Internet affects employment in Africa, we exploit the gradual arrival of submarine Internet cables on the coast and maps of the terrestrial cable network. Robust difference-in-differences estimates from three datasets covering 12 countries show large positive effects on...
Persistent link: https://www.econbiz.de/10013224341
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Supply Shocks in Macroeconomics
Shapiro, Matthew D. - 2007
Supply shocks played an important role in macroeconomic fluctuations during the 1970's. Supply shocks are also increasingly important in Keynesian and neo-classical models of the business cycle. This paper is a short survey of these theoretical models. It also discusses the history of supply...
Persistent link: https://www.econbiz.de/10012777374
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Aggregate Supply and Potential Output
Razin, Assaf - 2021
The New-Keynesian aggregate supply derives from micro-foundations an inflation-dynamics model very much like the tradition in the monetary literature. Inflation is primarily affected by: (i) economic slack; (ii) expectations; (iii) supply shocks; and (iv) inflation persistence. This paper...
Persistent link: https://www.econbiz.de/10013215682
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The Cost Channel of Monetary Transmission
Barth III, Marvin J.; Ramey, Valerie A. - 2021
This paper presents evidence that the cost channel' may be an important part of the monetary transmission mechanism. We argue that if working capital is an essential component of production and distribution, monetary contractions can affect output through a supply channel as well as the...
Persistent link: https://www.econbiz.de/10013222619
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Imperfect Information and Aggregate Supply
Mankiw, N. Gregory - 2010
This paper surveys the research in the past decade on imperfect information models of aggregate supply and the Phillips curve. This new work has emphasized that information is dispersed and disseminates slowly across a population of agents who strategically interact in their use of information....
Persistent link: https://www.econbiz.de/10013147370