Showing 1 - 10 of 36
In this note, a class of nonlinear dynamic models under rational expectations is studied. A particular solution is found using a model reference adaptive technique via an extended Kalman filtering algorithm, for which initial conditions knowledge only is required.
Persistent link: https://www.econbiz.de/10008500618
This paper studies the relationship between interest group political influence and allocation of decisionmaking power in a potentially divided government. We consider a simple endogenous policy model in which a legislator is in charge of setting the levels of two different policy instruments - a...
Persistent link: https://www.econbiz.de/10008727318
<!--Début du contenu @xml:lang="en"-->?Recent research in industrial organization has emphasized the strategic value of incomplete contracts in vertical inter-firm relationships. This paper offers a screening rationale for contractual incompleteness in a class of producer-retailer economies when countervailing incentives arise. By...
Persistent link: https://www.econbiz.de/10011186951
Methodologies for analyzing the forces that move and shape national economies have advanced markedly in the last thirty years, enabling economists as never before to unite theoretical and empirical research and align measurement with theory. In <i>Structural Macroeconometrics</i>, David DeJong and...
Persistent link: https://www.econbiz.de/10005797555
This paper investigates the relative importance of shocks to total factor productivity (TFP) versus the marginal efficiency of investment (MEI) in explaining cyclical variations. The literature offers contrasting results: TFP shocks are important in neoclassical environments, while relatively...
Persistent link: https://www.econbiz.de/10005835451
Methodologies for analyzing the forces that move and shape national economies have advanced markedly in the last thirty years, enabling economists as never before to unite theoretical and empirical research and align measurement with theory. In <i>Structural Macroeconometrics</i>, David DeJong and...
Persistent link: https://www.econbiz.de/10005200621
Persistent link: https://www.econbiz.de/10008776407
We examine the role of generalized constant gain stochastic gradient (SGCG) learning in generating large deviations of an endogenous variable from its rational expectations value. We show analytically that these large deviations can occur with a frequency associated with a fat tailed...
Persistent link: https://www.econbiz.de/10008855515
We quantitatively evaluate a business-cycle environment featuring endogenous capital utilization and nominal price rigidity that illustrates a negative relationship between labor hours and technology (TFP) shocks and a positive relationship between hours and investment (MEI) shocks. Sticky...
Persistent link: https://www.econbiz.de/10008864780
We axiomatize decreasing impatience (DI) in a discrete-time setting, as originally discussed by Prelec, and formulate a class of recursively-defined discounting functions that conform to DI. The recursive formulation is used to analyze the Ramsey growth problem using dynamic programming techniques.
Persistent link: https://www.econbiz.de/10008866831