Showing 1 - 10 of 22
This paper considers whether short-period deterministic cycles can exist in a class of stationary overlapping generations models with long- (but finite-) lived agents. It shows that if agents discount the future positively, then as life spans get large, nonmonetary cycles will disappear....
Persistent link: https://www.econbiz.de/10005367680
We find that the welfare gains to being at the optimum quantity of debt rather than the current U.S. level are small, and, therefore, concerns regarding the high level of debt in the U.S. economy may be misplaced. This finding is based on a model of a large number of infinitely-lived households...
Persistent link: https://www.econbiz.de/10005367732
This paper investigates the impact of aggregate variables of changes in government consumption in the context of a stochastic, neoclassical growth model. We show, theoretically, that the impact on output and employment of a persistent change in government consumption exceeds that of a temporary...
Persistent link: https://www.econbiz.de/10005372802
Many would say that children are society’s most precious resource. So, how should it invest in them? To gain insight into this question, a dynamic general equilibrium model is developed where children differ by ability. Parents invest time and money in their offspring, depending on their...
Persistent link: https://www.econbiz.de/10005712949
This paper is motivated by empirical observations on the comovements of currency velocity, inflation, and the relative size of the credit services sector. We document these comovements and incorporate into a monetary growth model a credit services sector that provides services that help people...
Persistent link: https://www.econbiz.de/10005498467
I argue that Farmer and Guo's one-sector real business cycle model with indeterminacy and sunspots fails empirically and that its failure is inherent in the logic of the model taken together with some simple labor market facts.
Persistent link: https://www.econbiz.de/10005498500
This paper investigates the impact on aggregate variables of changes in government consumption in the context of a stochastic, neoclassical growth model. We show, theoretically, that the impact on output and employment of a persistent change in government consumption exceeds that of temporary...
Persistent link: https://www.econbiz.de/10005526389
We prove the existence of a competitive equilibrium in an overlapping generations model in which each generation has a preference ordering over its own and its descendents’ consumptions. The model is one of pure exchange with many goods in each period and two period lived generations. The...
Persistent link: https://www.econbiz.de/10005427701
We consider the nature of optimal cyclical monetary policy in three different stochastic models with various shocks. The first is a pure liquidity effect model, the second is a cost of changing prices model, and the third is an optimal seignorage model. In each case we solve for the optimal...
Persistent link: https://www.econbiz.de/10005427706
(replaced by Staff Report No. 196)
Persistent link: https://www.econbiz.de/10005427716