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Uncertainty shocks in a model of effective demand

Basu, Susanto; Bundick, Brent - 2012

This paper examines the role of uncertainty shocks in a one-sector, representative-agent dynamic stochastic general equilibrium model. When prices are flexible, uncertainty shocks are not capable of producing business cycle comovements among key macro variables. With countercyclical markups...

Persistent link: https://www.econbiz.de/10010343352

Endogenous wage indexation and aggregate shocks

Carrillo, Julio A.; Peersman, Gert; Wauters, Joris - 2013

Wage indexation practices have changed. Evidence on the U.S. for instance suggests that wages were heavily indexed to past inflation during the Great Inflation but not during the Great Moderation. However, most DSGE models assume fixed indexation parameters in wage setting, which might not be...

Persistent link: https://www.econbiz.de/10010392379

The ins and arounds in the U.S. housing market

Bachmann, Rüdiger; Cooper, Daniel - 2014

In the United States, 15 percent of households change residence in a given year. This result is based on data from the Panel Study of Income Dynamics on gross flows within and between the two segments of the housing market-renter-occupied properties and owner-occupied properties. The gross flows...

Persistent link: https://www.econbiz.de/10010478899

Vanishing procyclicality of productivity? Industry evidence

Wang, J. Christina - 2014

Labor productivity (LP) in the United States has gone from being procyclical to acyclical since the mid-1980s. Using industry-level data, this paper first shows that total factor productivity (TFP), which is LP net of capital deepening, has also become much less correlated with output as well as...

Persistent link: https://www.econbiz.de/10010507638

Saving for a rainy day: Estimating the appropriate size of U.S. state budget stabilization funds

Zhao, Bo - 2014

Rainy day funds (RDFs) are potentially an important countercyclical tool for states to stabilize their budgets and the overall economy during economic downturns. However, U.S. states have often found themselves exhausting their RDFs and having to raise tax rates or reduce expenditure while still...

Persistent link: https://www.econbiz.de/10010507647

Consumption, sentiment, and economic news

Starr, Martha - 2008

This paper investigates the influence of economic news on consumer sentiment, and examines whether ‘news shocks’ –- changes in coverage that would not be expected from incoming data on economic fundamentals -– have aggregate effects. Using monthly U.S. data and a structural...

Persistent link: https://www.econbiz.de/10005673434

House prices and the distribution of wealth around the great recession

Cóndor, Richard; Moguel, Rodolfo Oviedo - 2023

This paper employs a calibrated model of the US economy to analyze the boom and bust in house prices as well as the shifts in the distribution of wealth during the years around the Great Recession. We replicate the dynamics of the housing market using shocks to aggregate income, the distribution...

Persistent link: https://www.econbiz.de/10014540953

Growth at risk and uncertainty: Evidence from Mexico

Salgado, Alfredo; Trujillo, Alejandro - 2023

We analyze the relationship between uncertainty and economic growth expectations in Mexico through the Growth at Risk methodology. Our analysis consists of two stages: first, we estimate a quantile regression of annual output growth conditional on lagged values of a measure of macroeconomic...

Persistent link: https://www.econbiz.de/10014541016

Can price controls be optimal? The economics of the energy shock in Germany

Krebs, Tom; Weber, Isabella - 2024

In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to stabilize the economy. Despite its wide adoption, many economists remained skeptical. In this paper, we argue that price controls should be part of the policy toolbox to respond...

Persistent link: https://www.econbiz.de/10014517443

Anclaje de las expectativas de inflación ante choques de oferta adversos

Aguilar-Argaez, Ana María; Cuadra, Gabriel; … - 2014

for the conduction of monetary policy focused on price stability along with fiscal discipline. This paper describes some … during the episode in 2012 inflation expectations showed greater stability. Results show that the response from inflation … a strengthening of the credibility of the Bank of Mexico's commitment to price stability. …

Persistent link: https://www.econbiz.de/10011445098