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When do inventories destabilize the economy? an analytical approach to (S,s) policies

Wang, Pengfei; Wen, Yi; Xu, Zhiwei - Federal Reserve Bank of St. Louis - 2011

Conventional wisdom has it that inventory investment destabilizes the economy because it is procyclical to sales. Khan and Thomas (2007) show that the conventional wisdom is wrong in a general equilibrium (S,s) model with capital. We argue that their finding is not robust—the conventional...

Persistent link: https://www.econbiz.de/10009024028

Inventory accelerator in general equilibrium

Wang, Pengfei; Wen, Yi - Federal Reserve Bank of St. Louis - 2009

We develop a general-equilibrium model of inventories with explicit micro-foundations by embedding the production … shocks have incentives to bunch production and smooth sales by carrying inventories. The optimal inventory target of a firm … yields novel predictions for the role of inventories in macroeconomic stability: Inventories may not only greatly amplify but …

Persistent link: https://www.econbiz.de/10004973891

Liquidity Premia, Price-Rent Dynamics, and Business Cycles

Miao, Jianjun; Wang, Pengfei; Zha, Tao - Federal Reserve Bank of Atlanta - 2014

n the U.S. economy during the past 25 years, house prices exhibit fluctuations considerably larger than house rents, and these large fluctuations tend to move together with business cycles. We build a simple theoretical model to characterize these observations by showing the tight connection...

Persistent link: https://www.econbiz.de/10010942128

Discount shock, price-rent dynamics, and the business cycle

Miao, Jianjun; Wang, Pengfei; Zha, Tao - 2020

The price-rent ratio in commercial real estate is highly volatile, and its variation comoves with the business cycle. To account for these two facts, we develop a dynamic general equilibrium model that explicitly introduces a rental market and incorporates the liquidity constraint on an...

Persistent link: https://www.econbiz.de/10012389584

Speculative bubbles and financial crisis

Wang, Pengfei; Wen, Yi - Federal Reserve Bank of St. Louis - 2009

Why are asset prices so much more volatile and so often detached from their fundamentals? Why does the burst of financial bubbles depress the real economy? This paper addresses these questions by constructing an infinite-horizon heterogeneous-agent general-equilibrium model with speculative...

Persistent link: https://www.econbiz.de/10004973913

Liquidity premia, price-rent dynamics, and business cycles

Miao, Jianjun; Wang, Pengfei; Zha, Tao - 2014

In the U.S. economy during the past 25 years, house prices exhibit fluctuations considerably larger than house rents, and these large fluctuations tend to move together with business cycles. We build a simple theoretical model to characterize these observations by showing the tight connection...

Persistent link: https://www.econbiz.de/10010397698

Discount shock, price-rent dynamics, and the business cycle

Miao, Jianjun; Wang, Pengfei; Zha, Tao - 2020

Persistent link: https://www.econbiz.de/10012219582

Liquidity premia, price-rent dynamics, and business cycles

Miao, Jianjun; Wang, Pengfei; Zha, Tao - 2014

Persistent link: https://www.econbiz.de/10010395957

Does size matter in the cryptocurrency market?

Li, Yi; Zhang, Wei; Xiong, Xiong; Wang, Pengfei - In: Applied economics letters 27 (2020) 14, pp. 1141-1149

Persistent link: https://www.econbiz.de/10012267073

A three-factor pricing model for cryptocurrencies

Shen, Dehua; Urquhart, Andrew; Wang, Pengfei - In: Finance research letters 34 (2020), pp. 1-6

Persistent link: https://www.econbiz.de/10012436740