Showing 1 - 10 of 1,063
This paper studies children as a risky asset associated to an investment option. Children provide utility but have a stochastic maintenance cost. We obtain several new results relative to models where children are deterministic goods, among which: i) Higher child risks diminish fertility and...
Persistent link: https://www.econbiz.de/10015228910
Due to a sharp decline in the fertility rate and a rapid increase in longevity, Japan's population aging is the …-fledged overlapping generations model. Our model replicates well the time paths of Japan’s macroeconomic variables from the 1980s to the … 2000s and yields future paths for these variables over a long horizon. We find that Japan’s population aging as a whole …
Persistent link: https://www.econbiz.de/10015234574
Aggregate inflation measures such as the Consumer Price Index seek to capture the impact on households consumption possibilities of changes in prices over time and are generally assumed as representative of all consumers. This is only true if households have all the same consumption patterns....
Persistent link: https://www.econbiz.de/10015231601
John Hicks argued that liquidity preference theory and loanable funds theory are equivalent, because in general equilibrium, Walras law dictates that one (for example, money) market is redundant when other markets (bond, commodities) are in equilibrium. While there are many other well-known...
Persistent link: https://www.econbiz.de/10015266459
This paper attempts to provide an economic interpretation of the factors that drive the movements of interest rates of bonds of different maturities in a continuous-time no arbitrage term structure model for Chile. The dynamics of yields in the model are explained by two latent factors, namely...
Persistent link: https://www.econbiz.de/10015240390
Major age milestones like the age of first job, retirement age, or life expectancy, bounding relevant economic periods in a persons' life, have been changing substantially during the last decades. In parallel real interest rates have been significantly declining in relevant world economies,...
Persistent link: https://www.econbiz.de/10015259541
This paper examines the macroeconomic consequences of a demographic transition in an environment where a producer's capital structure is relevant, thereby introducing an asset supply channel. Producers are heterogeneous with respect to how productive they are in different states of the world and...
Persistent link: https://www.econbiz.de/10015268136
This paper seeks to empirically analyze the determinants of the business failure rate, i.e., the proportion of businesses that fail. This issue is of obvious importance due to its ramifications for resource allocation, especially that of financial capital, physical capital, and labor. This...
Persistent link: https://www.econbiz.de/10015243337
The aim of this paper is twofold. First, I study how the proportion of fixed and variable-rate mortgages in an economy can affect the way shocks are propagated. Second, I analyze optimal implementable simple monetary policy rules and the welfare implications of this proportion. I develop and...
Persistent link: https://www.econbiz.de/10012530202
This paper studies the implications of cross-country housing market heterogeneity for a monetary union, also comparing the results with a flexible exchange rate and independent monetary policy setting. I develop a two-country new Keynesian general equilibrium model with housing and collateral...
Persistent link: https://www.econbiz.de/10012530257