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A basic model of real-financial market interactions with heterogeneous opinion dynamics

Hartmann, Florian; Charpe, Matthieu; Flaschel, Peter; … - 2016

We consider an alternative modelling approach to the mainstream DSGE paradigm, namely a Dynamic Stochastic General Disequilibrium (DSGD) baseline model of continuous and gradual adjustment processes on interacting real and financial markets. Heterogeneous capital gain expectations (chartists and...

Persistent link: https://www.econbiz.de/10011490978

Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts

Dixon, Huw; Kara, Engin - 2007

We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of di§erent lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of...

Persistent link: https://www.econbiz.de/10010322772

Persistence and nominal inertia in a generalized Taylor economy: how longer contracts dominate shorter contracts

Dixon, Huw; Kara, Engin - 2005

In this paper we develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of different lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. We are able to solve the...

Persistent link: https://www.econbiz.de/10011604535

Market Segmentation and the `Hump-Shaped' Response of Output to Monetary Policy Shocks

Occhino, Filippo - 2004

sign, the magnitude and the persistence of the responses of output, money, prices and interest rates. It can generate a …

Persistent link: https://www.econbiz.de/10010263230

Sticky Wages in a Stochastic DGE Model of the Business Cycle

Gail, Michael - 2004

costs of capital contribute strongly to output persistence. If it is not costly to adjust capital there is no output … persistence at all. Price adjustment costs can strengthen the effects of money growth shocks on output in the presence of costly …

Persistent link: https://www.econbiz.de/10010263283

Nominal and real rigidities in monetary stochastic dynamic general equilibrium models of the business cycle

Gail, Michael - 2004

persistence in output.Unfortunately only the response of consumption to a money growth shock can beimproved. For a high enough … value of the habit persistence parameter consumptioncan even be hump-shaped, as it is empirically (see Figure 1.4).Chapter 5 … can even strengthen the persistence in output. In the absence of thecosts for adjusting the capital stock there are only …

Persistent link: https://www.econbiz.de/10009459127

Inflation Inertia and Monetary Policy Shocks

Lendvai, Júlia - 2004

inflation and output persistence. The assumption of inflation inertia improves a model?s performance of reproducing inflation … persistence and the dynamic inflation-output link. A significant improvement requires high intensity of inflation inertia. The fit … of observed output persistence can not be improved. …

Persistent link: https://www.econbiz.de/10010494336

Non-uniform staggered prices and output persistence

Söderberg, Johan - 2009

Staggered prices are a fundamental building block of New Keynesian dynamic stochastic general equilibrium models. In the standard model, prices are uniformly staggered but recent empirical evidence suggest that deviations from uniform staggering are common, This paper analyzes how...

Persistent link: https://www.econbiz.de/10010321439

Investment, matching and persistence in a modified cash-in-advance economy

Auray, Stéphane; Blas, Beatriz de - In: Journal of economic dynamics & control 37 (2013) 3, pp. 591-610

Persistent link: https://www.econbiz.de/10009710482

Nonuniform staggered prices and output persistence

Söderberg, Johan - In: Journal of money, credit and banking : JMCB 45 (2013) 6, pp. 1017-1044

Persistent link: https://www.econbiz.de/10010197537