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The role of corporate saving over the business cycle : shock absorber or amplifier?
Gao, Xiaodan; Xu, Shaofeng - 2018
We document countercyclical corporate saving behavior with the degree of countercyclicality varying nonmonotonically with firm size. We then develop a dynamic stochastic general equilibrium model with heterogeneous firms to explain the pattern and study its implications for business cycles. In...
Persistent link: https://www.econbiz.de/10011946440
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Risk sharing and real exchange rates : the role of non-tradable sector and trend shocks
Akkoyun, Hüseyin Çağrı; Arslan, Yavuz; Kılınç, … - 2017
Persistent link: https://www.econbiz.de/10011613499
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Risk endogeneity at the lender/investor-of-last-resort
Caballero, Diego; Lucas, André; Schwaab, Bernd; Zhang, Xin - 2019
Persistent link: https://www.econbiz.de/10011981369
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Agency costs, risk shocks and international cycles
Letendre, Marc-André; Wagner, Joel - 2016
model to an alternative model that also includes risk shocks à la Christiano, Motto and Rostango (2014). We use credit … spread data (for the United States) to calibrate the AR(1) process for risk shocks. We find that risk shocks are too small to …
Persistent link: https://www.econbiz.de/10011415163
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Secular economic changes and bond yields
Feunou, Bruno; Fontaine, Jean-Sébastien - 2021 - Last updated: March 19, 2021
We build a model for bond yields based on a small-scale representation of an economy with secular declines in inflation, the real rate and output growth. Long-run restrictions identify nominal shocks that influence long-run inflation but do not influence the long-run real rate or output growth....
Persistent link: https://www.econbiz.de/10012488074
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How do agents form macroeconomic expectations? : evidence from inflation uncertainty
Wang, Tao - 2024 - Last updated: February 16, 2024
This paper studies the behaviors of uncertainty through the lens of several popular models of expectation formation. The full-information rational expectations model (FIRE) predicts that both the ex ante uncertainty and the variance of ex post forecast errors are equal to the conditional...
Persistent link: https://www.econbiz.de/10014475397
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Perceived versus calibrated income risks in heterogeneous-agent consumption models
Wang, Tao - 2023 - Last updated: December 27, 2023
calibrate the size of income risk to match panel data on household income dynamics. But, for several reasons, what is measured … as risk from such data may not correspond to the risk perceived by the agent. This paper instead uses data from the … differential precautionary saving motives. I also explore the implications of the fact that the perceived risk is lower than the …
Persistent link: https://www.econbiz.de/10014456727
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Communicating inflation uncertainty and household expectations
Kostyshyna, Olena; Petersen, Luba - 2023 - Updated on: January 11, 2024
This paper examines the value of direct communication to households about inflation and the uncertainty around inflation statistics. All types of information about inflation are effective at immediately managing inflation expectations, with information about outlooks being more effective and...
Persistent link: https://www.econbiz.de/10014457623
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Optimal inflation with corporate taxation and financial constraints
Finocchiaro, Daria; Lombardo, Giovanni; Mendicino, Caterina - 2015
Persistent link: https://www.econbiz.de/10011436009
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Optimal monetary policy and price stability over the long-run
Kryvtsov, Oleksiy (contributor); Shukayev, Malik (contributor) - 2007
This paper examines the role of monetary policy in an environment with aggregate risk and incomplete markets. In a two … optimal allocation. This policy aims to stabilize the savings rate in the economy via the effect of expected inflation on real …
Persistent link: https://www.econbiz.de/10003462957