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Inequality, Fiscal Policy and Covid19 Restrictions in a Demand-Determined Economy
Auerbach, Alan J. - 2020
We evaluate the effects of inequality, fiscal policy, and COVID19 restrictions in a model of economic slack with … potentially rigid capital operating costs. Inequality has large negative effects on output, while also diminishing the effects of … restrictions themselves when rigid capital costs induce firm exit. Higher inequality is associated with larger restriction …
Persistent link: https://www.econbiz.de/10012831278
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Inequality, Business Cycles, and Monetary-Fiscal Policy
Bhandari, Anmol - 2018
We study optimal monetary and fiscal policy in a model with heterogeneous agents, incomplete markets, and nominal rigidities. We develop numerical techniques to approximate Ramsey plans and apply them to a calibrated economy to compute optimal responses of nominal interest rates and labor tax...
Persistent link: https://www.econbiz.de/10012916616
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How Effective Have Fiscal Policies Been in Changing the Distribution of Income and Wealth?
King, Mervyn - 2021
shall divide the issue into two questions. How effective has fiscal policy been in reducing inequality? Mow big are the …
Persistent link: https://www.econbiz.de/10013233898
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Fiscal Multipliers : A Heterogenous-Agent Perspective
Broer, Tobias; Krusell, Per; Öberg, Erik - 2022
We use an analytically tractable heterogeneous-agent (HANK) version of the standard New Keynesian model to show how the size of fiscal multipliers depends on i) the distribution of factor incomes, and ii) the source of nominal rigidities. With sticky prices but flexible wages, the standard...
Persistent link: https://www.econbiz.de/10014089542
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Behavioral Corporate Finance : An Updated Survey
Baker, Malcolm P. - 2011
We survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The … on their decisions. We review relevant psychology, economic theory and predictions, empirical challenges, empirical …
Persistent link: https://www.econbiz.de/10013121051
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How Structural are Structural Parameters?
Fernández-Villaverde, Jesús - 2012
This paper studies how stable over time are the so-called "structural parameters" of dynamic stochastic general equilibrium (DSGE) models. To answer this question, we estimate a medium-scale DSGE model with real and nominal rigidities using U.S. data. In our model, we allow for parameter...
Persistent link: https://www.econbiz.de/10013104685
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Monetary Policy and Rational Asset Price Bubbles
Galí, Jordi - 2013
I examine the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an overlapping generations model with nominal rigidities. A systematic increase in interest rates in response to a growing bubble is shown to enhance the fluctuations in the latter,...
Persistent link: https://www.econbiz.de/10013086674
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Rational Attention Allocation Over the Business Cycle
Kacperczyk, Marcin T. - 2010
The question of whether and how mutual fund managers provide valuable services for their clients motivates one of the largest literatures in finance. One candidate explanation is that funds process information about future asset values and use that information to invest in high-valued assets....
Persistent link: https://www.econbiz.de/10013150438
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Adoption Curves and Social Interactions
Brock, William A. - 2010
This paper considers the observational implications of social influences on adoption decisions for an environment of perfect foresight adopters. We argue that social influences can produce two observable effects: 1) discontinuities in unconditional adoption curves and 2) pattern reversals in...
Persistent link: https://www.econbiz.de/10013152509
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Investment Tournaments : When Should a Rational Agent Put All Eggs in One Basket?
Schwarz, Michael - 2009
In this paper we study "investment tournaments," a class of decision problems that involve gradual allocation of investment among several alternatives whose values are subject to exogenous shocks. The decision-maker's payoff is determined by the final values of the alternatives. An important...
Persistent link: https://www.econbiz.de/10013158033