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Behavioral macroeconomics and the New Keynesian Model
Menz, Jan-Oliver - 2008
The contribution of this paper is twofold. First, a thorough presentation of the state of the art of the New Keynesian Macroeconomic model is provided. A discussion of its empirical caveats follows and some recent extensions of the standard model are evaluated in more detail. Second, a key...
Persistent link: https://www.econbiz.de/10010425874
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The intertemporal marginal propensity to consume out of future persistent cash-flows : evidence from transaction data
Druedahl, Jeppe; Jensen, Emil Bjerre; Leth-Petersen, Søren - 2022
To analyze the effectiveness of stabilization policies which includes effects on households future income it is central to account for anticipation effects on consumption. We investigate this using high-frequency spending and balance sheet data from a major Danish bank. We examine the behavior...
Persistent link: https://www.econbiz.de/10013361501
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On Uniqueness of Time-Consistent Markov Policies for Quasi-Hyperbolic Consumers Under Uncertainty
Balbus, Lukasz - 2016
We give a set of sufficient conditions for uniqueness of a time-consistent Markov stationary consumption policy for a quasi-hyperbolic household under uncertainty. To the best of our knowledge, this uniqueness result is the first presented in the literature for general settings, i.e. under...
Persistent link: https://www.econbiz.de/10012979316
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Interacting Mechanisms of Time Inconsistency
Findley, T. Scott - 2014
We interact two prominent behavioral mechanisms of time inconsistency that have been used to study inadequate saving: hyperbolic discounting and short-term planning. Hyperbolic discounting is a conventional way to model impulsive decision making, and short planning horizons have been used to...
Persistent link: https://www.econbiz.de/10013063918
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A General Equilibrium Analysis of Inflation and Microfinance in Developing Countries
Müller, Daniel - 2013
This paper analyses the welfare effects of microfinance and inflation in developing countries. Therefore, we introduce … microfinance institution induces peer monitoring, which in turn enables entrepreneurship. Our main result is that there exists an … inflation threshold beyond which entrepreneurship collapses. We show that inflation affects the impact of microfinance on social …
Persistent link: https://www.econbiz.de/10011390685
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A general equilibrium analysis of inflation and microfinance in developing countries
Müller, Daniel - 2013
This paper analyses the welfare effects of microfinance and inflation in developing countries. Therefore, we introduce … microfinance institution induces peer monitoring, which in turn enables entrepreneurship. Our main result is that there exists an … inflation threshold beyond which entrepreneurship collapses. We show that inflation affects the impact of microfinance on social …
Persistent link: https://www.econbiz.de/10009772193
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Consumption and Portfolio Rebalancing Response of Households to Monetary Policy : Evidence of the HANK Channel
Agarwal, Sumit - 2020
This paper tests one specific monetary transmission mechanism through households: portfolio rebalancing. We use a unique panel dataset of household's credit and debit card spending, ATM withdrawals, financial investments into risky assets such as mutual funds and equities, as well as bank...
Persistent link: https://www.econbiz.de/10012835832
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Optimal Monetary Policy Under Bounded Rationality
Benchimol, Jonathan - 2019
The form of bounded rationality characterizing the representative agent is key in the choice of the optimal monetary policy regime. While inflation targeting prevails for myopia that distorts agents' inflation expectations, price level targeting emerges as the optimal policy under myopia...
Persistent link: https://www.econbiz.de/10012864097
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Oligopoly Banking, Risky Investment, and Monetary Policy
Altermatt, Lukas; Wang, Zijian - 2021
Oligopolistic competition in the banking sector and risk in the real economy are important characteristics of developed economies, but so far they have mostly been abstracted from monetary models. We build a dynamic general equilibrium model of monetary policy transmission that incorporates both...
Persistent link: https://www.econbiz.de/10013219369
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Monetary Easing, Leveraged Payouts and Lack of Investment
Acharya, Viral V. - 2020
This paper studies a model in which a low monetary policy rate lowers the cost of capital for entrepreneurs, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase payouts to equity. Whereas such leveraged payouts...
Persistent link: https://www.econbiz.de/10012846842