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Speculative Hyperinflations in Maximizing Models : Can We Rule Them Out?
Obstfeld, Maurice - 1982
Knife-edge stability is a common property of dynamic monetary models assuming perfect foresight or rational expectations. These models can be closed with the assumption that the economy's equilibrium lies on the unique convergent path (the saddlepath). While this empirically plausible assumption...
Persistent link: https://www.econbiz.de/10012478256
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International Evidence on Sticky Consumption Growth
Carroll, Christopher D. - 2008
We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high degree of autocorrelation, with a stickiness...
Persistent link: https://www.econbiz.de/10012464771
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Hysteresis in the Trade Pattern
Grossman, Gene M. - 1990
We study a world economy comprising two countries that may differ only in their prior experience in the research lab. Entrepreneurs in each country develop new technologies for varieties of a differentiated product whenever expected profits justify up-front research costs. Research productivity...
Persistent link: https://www.econbiz.de/10012475471
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Re-Interpreting the Failure of Foreign Exchange Market Efficiency Tests : Small Transaction Costs, Big Hysteresis Bands
Baldwin, Richard E. - 1990
first-order hysteresis band. Consequently uncovered interest parity does not hold and market efficiency tests based on it …
Persistent link: https://www.econbiz.de/10012475716
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Perishable Investment and Hysteresis in Capital Formation
Dumas, Bernard - 1989
Entry into a market seems to necessitate some investment into "marketing capital" (or distribution capital: advertising, dealerships etc ... ). This form of investment has the property that, if it is unused for some time, it quickly becomes worthless. When entry into a market requires marketing...
Persistent link: https://www.econbiz.de/10012476123
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Exchange Rate Hysteresis : The Real Effects of Large vs Small Policy Misalignments
Baldwin, Richard - 1989
Using the sticky price monetary model of exchange rate determination and the sunk cost model of trade hysteresis, we … show that a sufficiently large policy misalignment can induce hysteresis in the trade balance and thereby alter the steady …, policy, and econometric implications. Since hysteresis in our model can entail industrial dislocation and the scrappage of …
Persistent link: https://www.econbiz.de/10012476229
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The Real Exchange Rate, Innovation and Productivity : Regional Heterogeneity, Asymmetries and Hysteresis
Alfaro, Laura - 2018
We evaluate manufacturing firms' responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts: In export-oriented emerging Asia, real depreciations are associated with faster...
Persistent link: https://www.econbiz.de/10012453086
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Hysteresis and the Welfare Effect of Corrective Policies : Theory and Evidence from an Energy-Saving Program
Costa, Francisco - 2018
longer in place. This paper studies the importance of such "hysteresis" - the failure of an effect to reverse itself as its … underlying cause is reversed - for the welfare evaluation of corrective policies. First, we introduce hysteresis into the … then derive new formulas allowing for hysteresis. We show that, under certain conditions, the persistent effect of a short …
Persistent link: https://www.econbiz.de/10012453110
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The Effects of Income Mobility and Tax Persistence on Income Redistribution and Inequality
Agranov, Marina - 2016
experiment is conducted to test the main comparative static predictions of the theory, and the results are generally supportive …
Persistent link: https://www.econbiz.de/10012455921
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Carbon Taxes, Path Dependency and Directed Technical Change : Evidence from the Auto Industry
Aghion, Philippe - 2012
Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that...
Persistent link: https://www.econbiz.de/10012460065