Showing 1 - 10 of 847
sunspots . Separately, recent work by a number of authors has shown that sunspot equilibria previously thought to be unstable …
Persistent link: https://www.econbiz.de/10010986495
We study the properties of a GEI model with nominal assets, outside money (injected into the economy as in Magill and Quinzii (J Math Econ 21:301–342, <CitationRef CitationID="CR17">1992</CitationRef>)), and multiple currencies. We analyze the existence of monetary equilibria and the structure of the equilibrium set under two different...</citationref>
Persistent link: https://www.econbiz.de/10010993532
80 sunspots. In contrast, hurricane risk in regions of the southeastern Atlantic is predicted to increase by 73 % when … the SSN is 160 sunspots. The model can be ported to explore other relationships over contiguous space. Copyright Springer …
Persistent link: https://www.econbiz.de/10010995971
This paper considers the necessity and sufficiency of multiple certainty equilibria for sunspot effects, and shows that neither implication is valid. This claim is made for models with incomplete markets and numeraire assets. First, I prove that a multiplicity of certainty equilibria is neither...
Persistent link: https://www.econbiz.de/10010875278
This paper analyzes how the interaction between firms’ entry-and-exit decisions and variations in competition gives rise to self-fulfilling, expectation-driven fluctuations in aggregate economic activity and in measured total factor productivity (TFP). The analysis is based on a dynamic...
Persistent link: https://www.econbiz.de/10010878065
source of business cycles driven by self-fulfilling volatile expectations, i.e. sunspots. We also find that, in the presence …
Persistent link: https://www.econbiz.de/10010884212
This paper uses a stylised asset-pricing model to show that sunspots may cause asset returns to be predictable, a … widely documented feature of many speculative markets. This result parallels and extends previous works showing that sunspots …
Persistent link: https://www.econbiz.de/10010905155
Existing literature continues to be unable to offer a convincing explanation for the volatility of the stochastic discount factor in real world data. Our work provides such an explanation. We do not rely on frictions, market incompleteness or transactions costs of any kind. Instead, we modify a...
Persistent link: https://www.econbiz.de/10010933923
We analyze sunspot-driven fluctuations in the standard 2-sector RBC model with moderate increasing returns to scale. We provide a detailed theoretical analysis enabling us to derive relevant bifurcation loci and to characterize the steady-state local stability properties as a function of various...
Persistent link: https://www.econbiz.de/10010933924
We propose and solve a small-scale New-Keynesian model with Markov sunspot shocks that move the economy between a targeted-inflation regime and a deflation regime and fit it to data from the U.S. and Japan. For the U.S. we find that adverse demand shocks have moved the economy to the zero lower...
Persistent link: https://www.econbiz.de/10010936511