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Consumption, habit persistence, imperfect information and the lifetime budget constraint

Willman, Alpo - 2003

Based on the householdsu0092 utility maximisation, a closed form approximation of the consumption function is derived and the deep parameters of the consumption function are estimated using aggregate euro area data. The novel element in our approach is the parameterisation of the information...

Persistent link: https://www.econbiz.de/10009635925

Wealth mobility and dynamics over entire individual working life cycles

Hochguertel, Stefan; Ohlsson, Henry - 2011

We study taxable wealth in unique Swedish administrative data, annually following a large sample of households over a period of almost 40 years. The main data limitation is non-observability of wealth for those below the tax exemption level. This implies that much of the focus of the paper is on...

Persistent link: https://www.econbiz.de/10009640634

Government deficits, wealth effects and the price level in an optimizing model

Annicchiarico, Barbara - 2003

This paper investigates the in inflationary effects of fscal policy in an optimizing general equilibrium monetary model with capital accumulation, exible prices and wealth effects. The model is calibrated to Euro Area quarterly data. Simulation results show that government defcits, high debt...

Persistent link: https://www.econbiz.de/10009635879

The output composition puzzle

Angeloni, Ignazio; Kashyap, Anil K.; Mojon, Benoît; … - 2003

We revisit recent evidence on how monetary policy affects output and prices in the U.S. and in the euro area. The response patterns to a shift in monetary policy are similar in most respects, but differ noticeably as to the composition of output changes. In the euro area investment is the...

Persistent link: https://www.econbiz.de/10009635907

Is the New Keynesian IS curve structural?

Stracca, Livio - 2010

There is already a small literature emphasising the empirical failure of the New Keynesian IS curve, but it is not yet known if this failure reflects empirical problems associated with small samples or is rather a structural weakness of the underlying model. To address this question, in this...

Persistent link: https://www.econbiz.de/10009640304

Interest rate effects of demographic changes in a New-Keynesian life-cycle framework

Kara, Engin; Thadden, Leopold von - 2010

This paper develops a small-scale DSGE model which embeds a demographic structure within a monetary policy framework. We extend the tractable, though non-monetary overlapping-generations model of Gertler (1999) and present a small synthesis model which combines the set-up of Gertler with a...

Persistent link: https://www.econbiz.de/10009640420

Balance Sheet Interlinkages and Macro-Financial Risk Analysis in the Euro Area

Kavonius, Ilja Kristian; Castrén, Olli - 2009

The financial crisis has highlighted the need for models that can identify counterparty risk exposures and shock transmission processes at the systemic level. We use the euro area financial accounts (flow of funds) data to construct a sector-level network of bilateral balance sheet exposures and...

Persistent link: https://www.econbiz.de/10009640455

the role of housing and financial wealth

Slacalek, Jiri - 2009

I investigate the effect of wealth on consumption in a new dataset with financial and housing wealth from 16 countries … area economies, consumption only barely reacts to wealth elsewhere. The effect of housing wealth is somewhat smaller than … that of financial wealth for most countries, but not for the US and the UK. The housing wealth effect has risen …

Persistent link: https://www.econbiz.de/10009640462

How large are housing and financial wealth effects?

Carroll, Christopher D.; Otsuka, Misuzu; Slacalek, Jiri - 2010

consume from a $1 change in housing wealth is about 2 cents, with a final eventual effect around 9 cents, substantially larger …

Persistent link: https://www.econbiz.de/10009640516

Financial imbalances and financial fragility

Boissay, Frédéric - 2011

This paper develops a general equilibrium model to analyze the link between financial imbalances and financial crises. The model features an interbank market subject to frictions and where two equilibria may (co-)exist. The normal times equilibrium is characterized by a deep market with highly...

Persistent link: https://www.econbiz.de/10009640693