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Psychology and the Market
Glaeser, Edward L. - 2004
Prospect theory, loss aversion, mental accounts, hyperbolic discounting, cues, and the endowment effect can all be seen …
Persistent link: https://www.econbiz.de/10012468491
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Keynesian Macroeconomics without the LM Curve
Romer, David - 2000
Changes in both the macroeconomy and in macroeconomics suggest that the IS-LM-AS model is no longer the best baseline model of short-run fluctuations for teaching and policy analysis. This paper presents an alternative model that replaces the assumption that the central bank targets the money...
Persistent link: https://www.econbiz.de/10012471315
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The Fallacy of the Fiscal Theory of the Price Level
Buiter, Willem H. - 1999
or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and … proponents of the fiscal theory of the price level do not accept the fundamental proposition that the government's intertemporal …. Policy conclusions could be drawn from the fiscal theory of the price level that would be harmful if they influenced the …
Persistent link: https://www.econbiz.de/10012471482
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The Public Critique of Welfare Economics : An Exploration
Besley, Timothy - 1999
The welfare economic method for analyzing the case for government intervention is often criticized for ignoring the political determination of policies. While many economists accept the thrust of this critique, exactly when and how political determination interferes with a welfare economic...
Persistent link: https://www.econbiz.de/10012471713
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The Perils of the Learning Model For Modeling Endogenous Technological Change
Nordhaus, William D. - 2009
Learning or experience curves are widely used to estimate cost functions in manufacturing modeling. They have recently been introduced in policy models of energy and global warming economics to make the process of technological change endogenous. It is not widely appreciated that this is a...
Persistent link: https://www.econbiz.de/10012464011
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New Keynesian Models : Not Yet Useful for Policy Analysis
Chari, V.V. - 2008
Macroeconomists have largely converged on method, model design, reduced-form shocks, and principles of policy advice. Our main disagreements today are about implementing the methodology. Some think New Keynesian models are ready to be used for quarter-to-quarter quantitative policy advice; we do...
Persistent link: https://www.econbiz.de/10012464338
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How Structural Are Structural Parameters?
Fernández-Villaverde, Jesús - 2007
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/10012465487
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A General Formula for the Optimal Level of Social Insurance
Chetty, Raj - 2005
In an influential paper, Baily (1978) showed that the optimal level of unemployment insurance (UI) in a stylized static model depends on only three parameters: risk aversion, the consumption-smoothing benefit of UI, and the elasticity of unemployment durations with respect to the benefit rate....
Persistent link: https://www.econbiz.de/10012467297
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Why You Should Never Use the Hodrick-Prescott Filter
Hamilton, James D. - 2017
Here's why. (1) The HP filter produces series with spurious dynamic relations that have no basis in the underlying data-generating process. (2) Filtered values at the end of the sample are very different from those in the middle, and are also characterized by spurious dynamics. (3) A statistical...
Persistent link: https://www.econbiz.de/10012455252
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Decision-Making under the Gambler's Fallacy : Evidence from Asylum Judges, Loan Officers, and Baseball Umpires
Chen, Daniel - 2016
We find consistent evidence of negative autocorrelation in decision-making that is unrelated to the merits of the cases considered in three separate high-stakes field settings: refugee asylum court decisions, loan application reviews, and major league baseball umpire pitch calls. The evidence is...
Persistent link: https://www.econbiz.de/10012026883