A combination of an investment-driven macroeconomy and a conflictdetermined income distribution gives cyclical behavior. Models of wage-price inflation can be nested in the Goodwinian tradition. Endogenous technical change has ambiguous effects on equilibrium: Kaldor-Verdoorn effects increase...

We consider a Keynes-Goodwin model of effective demand and the distributive cycle where workers purchase goods and houses with a marginal propensity significantly larger than one. They therefore need credit, supplied from asset holders, and have to pay interest on their outstanding debt. In this...

We consider a Keynes-Goodwin model of effective demand and the distributive cycle where workers purchase goods and houses with marginal propensity significantly larger than one. They therefore need credit, supplied from asset holders, and have to pay interest on their outstanding debt. In this...

This paper presents a model addressing the conditions under which financial instability arises in the event of household debt. The model addresses two main cases. First, household debt is affected by functional income distribution. Second, household debt is affected by credit supply and depends...

In 2007 the General Statistics Office (GSO) launched a joint research program with the French Institute of Research for Development (IRD) to measure and analyzes the informal sector in Vietnam. Two kinds of surveys were conducted in 2007: a national Labour Force Survey (LFS) which, in a first...

Vietnam is one of the only South East Asian emerging economies not to have gone into recession in 2009 in the wake of the world crisis. Nonetheless, it has been affected deeply by the crisis, as shown by all macro-economic indicators. The yearly growth rate of Gross Domestic Product (GDP) has...

We extend the Bewley-Aiyagari-Huggett model by incorporating an incomplete stock market and a persistent income process. In this quantitative general equilibrium framework, non-fundamental asset values are both large and desirable for realistic parameter values. However, if expectations shift...

The great contraction of 2008 pushed the U.S. economy into a protracted liquidity trap (i.e., a long period with zero nominal interest rates and inflationary expectations below target). In addition, the recovery was jobless (i.e., output growth recovered but unemployment lingered). This paper...

This paper applies the method of identification through heteroskedasticity (Rigobon and Sack, 2003) to address the simultaneity problem in Phillips curve estimations as an alternative to GMM estimations or exclusion restrictions. This approach makes use of shifts in the relative volatility of...

This paper describes and estimates (with a Bayesian likelihood approach) an otherwise standard dynamic stochastic general equilibrium model, with both sticky prices and wages, augmented with several labor market rigidities (of a Walrasian nature), namely: indivisible labor, predetermined...