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On equilibrium prices in continuous time

Martins-da-Rocha, V. Filipe; Riedel, Frank - 2008

We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices.

Persistent link: https://www.econbiz.de/10010272583

Chain stability in trading networks

Hatfield, John William; Kominers, Scott Duke; Nichifor, … - In: Theoretical Economics 16 (2021) 1, pp. 197-234

In a general model of trading networks with bilateral contracts, we propose a suitably adapted chain stability concept that plays the same role as pairwise stability in two-sided settings. We show that chain stability is equivalent to stability if all agents' preferences are jointly fully...

Persistent link: https://www.econbiz.de/10013189046

Voice and bargaining power

Gersbach, Hans; Haller, Hans - 2006

We propose a formal concept of the power of voice in the context of a simple model where individuals form groups and trade in competitive markets. Individuals use outside options in two different ways. Actual outside options reflect the possibility to exit or to join other existing groups....

Persistent link: https://www.econbiz.de/10010261418

Trend growth and learning about monetary policy rules in a two-block world economy

Schaling, Eric; Tesfaselassie, Mewael F. - 2013

of openness and growth on determinacy and learnability of worldwide rational expectations equilibria we develop a two … (i) under the contemporaneous data policy rule the conditions for determinacy and learnability become more stringent on … expectations-based policy rule the conditions for determinacy and learnability also become more stringent on account of openness …

Persistent link: https://www.econbiz.de/10010292721

A Proof of Determinacy in the New-Keynesian Sticky Wages and Prices Model

Franke, Reiner; Flaschel, Peter - 2008

The paper is concerned with determinacy in a version of the New-Keynesian model that integrates imperfect competition …?s continuous-time counterpart is mathematically tractable and its determinacy results carry over to the period model at least if … the period is sufficiently short. This being understood, it is proved that determinacy is (essentially) ensured if an …

Persistent link: https://www.econbiz.de/10010296306

The number of equilibria of smooth infinite economies

Covarrubias, Enrique - 2011

We construct an index theorem for smooth infinite economies that shows that generically the number of equilibria is odd. As a corollary, this gives a new proof of existence and gives conditions that guarantee global uniqueness of equilibria.

Persistent link: https://www.econbiz.de/10010322551

Monetary policy, determinacy, and the natural rate hypothesis

Meyer-Gohde, Alexander - 2011

Imposing the natural rate hypothesis (NRH) can dramatically alter the determinacy bounds on monetary policy by closing … the output gap in the long run. I show that the hypothesis eliminates any role for the output gap in determinacy and … renders the conditions for determinacy identical for all conforming supply equations. Specializing further to IS demand …

Persistent link: https://www.econbiz.de/10010333041

Trend Inflation and Firms Price-Setting: Rotemberg vs. Calvo

Ascari, Guido; Rossi, Lorenza - 2009

inflation enlarges the determinacy region in the Rotemberg model, while it shrinks the determinacy region in the Calvo model. iv …

Persistent link: https://www.econbiz.de/10010335259

Monetary Policy, Rule-of-Thumb Consumers and External Habits: A G7 Comparison

Di Bartolomeo, Giovanni; Rossi, Lorenza; Tancioni, … - 2009

This paper extends the standard New Keynesian dynamic stochastic general equilibrium (DSGE) model to agents who cannot smooth consumption (i.e. spenders) and are affected by external consumption habits. Although these assumptions are not new, their joint consideration strongly affects some...

Persistent link: https://www.econbiz.de/10010335262

Limited Asset Market Participation: Does it Really Matter for Monetary Policy?

Ascari, Guido; Colciago, Andrea; Rossi, Lorenza - 2010

determinacy for any empirically plausible degree of LAMP; ii) the effect of LAMP for the design of optimal monetary policy are …

Persistent link: https://www.econbiz.de/10010335268