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Increasing Returns and All That : A View From Trade

Antweiler, Werner - 2000

Do scale economies contribute to our understanding of international trade? Do international trade flows encode information about the extent of scale economies? To answer these questions we examine the large class of general equilibrium theories that imply Helpman-Krugman variants of the Vanek...

Persistent link: https://www.econbiz.de/10012470795

Complementarity and Increasing Returns in Intermediate Inputs : A Theoretical and Applied General-Equilibrium Analysis

Lopez-de-Silane, Florencio - 1992

Conventional analysis in the trade-industrial-organization literature suggests that, when a country has some market power over an imported good, some small level of protection must be welfare improving. This is essentially a terms-of-trade argument that is reinforced if the imported goods are...

Persistent link: https://www.econbiz.de/10012474788

Sticky Information in General Equilibrium

Mankiw, N. Gregory - 2006

This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating their information sets, when setting prices, wages, and consumption. After presenting the...

Persistent link: https://www.econbiz.de/10012466056

The Past, Present, and Future of Macroeconomic Forecasting

Diebold, Francis X. - 1997

Broadly defined, macroeconomic forecasting is alive and well. Nonstructural forecasting which is based largely on reduced-form correlations, has always been well and continues to" improve. Structural forecasting, which aligns itself with economic theory and hence rises and" falls with theory,...

Persistent link: https://www.econbiz.de/10012472523

An Optimizing IS-LM Specification for Monetary Policy and Business Cycle Analysis

McCallum, Bennett T. - 1997

This paper asks whether relations of the IS-LM type can sensibly be used for the aggregate demand portion of a dynamic optimizing general equilibrium model intended for analysis of issues regarding monetary policy and cyclical fluctuations. The main result is that only one change -- the addition...

Persistent link: https://www.econbiz.de/10012472953

Macroeconomics and Volatility : Data, Models, and Estimation

Fernández-Villaverde, Jesús - 2010

high volatility are followed by periods of low volatility. For instance, the turbulent 1970s were followed by the much more … tranquil times of the great moderation from 1984 to 2007. Modeling these movements in volatility is important to understand the … different mechanisms proposed in the literature to generate changes in volatility similar to the ones observed in the data …

Persistent link: https://www.econbiz.de/10012462039

Pricing Assets in an Economy with Two Types of People

Farmer, Roger E.A. - 2016

This paper constructs a general equilibrium model with two types of people where asset price fluctuations are caused by random shocks to the price level that reallocate consumption across generations. In this model, asset prices are volatile, and price-earnings ratios are persistent, even though...

Persistent link: https://www.econbiz.de/10012456447

Exchange rate dynamics revisited

de Macedo, Jorge Braga - 2013

Many monetary and fiscal policy decision makers and economists hold the view that exchange rates are volatile even though nominal exchange rates vary less than many other financial market prices and yields. This paper seeks an explanation for this puzzle by contrasting exchange rate dynamics in...

Persistent link: https://www.econbiz.de/10012458945

Business Cycle Fluctuations and the Life Cycle : How Important is On-The-Job Skill Accumulation?

Hansen, Gary D. - 2007

We study the effects of on-the-job skill accumulation on average hours worked by age and the volatility of hours over … volatility of hours over the life cycle depends on the value of the intertemporal elasticity of labor supply. When individuals … accumulate skills by on-the-job training, there are only weak effects on both the steady-state labor supply and its volatility …

Persistent link: https://www.econbiz.de/10012465043

Investment Spikes : New Facts and a General Equilibrium Exploration

Gourio, Francois - 2007

Using plant-level data from Chile and the U.S. we show that investment spikes are highly pro-cyclical, so much so that changes in the number of establishments undergoing investment spikes (the "extensive margin") account for the bulk of variation in aggregate investment. The number of...

Persistent link: https://www.econbiz.de/10012465496