Showing 1 - 10 of 89
Persistent link: https://www.econbiz.de/10001642000
Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...
Persistent link: https://www.econbiz.de/10014183715
In this paper we study full-capacity flat-rate equilibrium in an economy with a numeraire and a dated commodity the latter being physically identical in all other respects. We show that the equilibrium exists even if the unit cost of production is time varying and the associated allocation is...
Persistent link: https://www.econbiz.de/10014203889
In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the state space is unbounded. Important examples of such economies are single sector growth models with production externalities, valued fiat money, monopolistic competition, and/or...
Persistent link: https://www.econbiz.de/10014120708
A general and practical competitive market model for trading indivisible goods is introduced. There are a group of buyers and a group of sellers, and several indivisible goods. Each buyer is initially endowed with a sufficient amount of money and each seller is endowed with several units of each...
Persistent link: https://www.econbiz.de/10014125050
We propose a nonparametric approach to multiple calibration of numerical general equilibrium models, where counterfactual equilibria are solutions to the Walrasian inequalities. We present efficient approximation schemes for deciding the solvability of Walrasian inequalities
Persistent link: https://www.econbiz.de/10014080874
This paper investigates the learnability of an equilibrium where agents formulate their forecasts under adaptive learning with heterogeneously misspecified econometric models; the equilibrium is called a Heterogeneous Misspecification Equilibrium (HME). The paper finds that the learnability...
Persistent link: https://www.econbiz.de/10013251133
This paper considers a prototypical monetary business cycle model for the U.S. economy, in which the equilibrium is undetermined if monetary policy is "inactive". In previous multivariate studies it has been common practice to restrict parameter estimates to values for which the equilibrium is...
Persistent link: https://www.econbiz.de/10014112362
We derive sufficient conditions for the existence of multiple equilibria in two-good, two-agent pure exchange economies with heterogeneous but symmetric preferences with identical Bernoulli utilities. When preferences are non-homothetic (e.g., quadratic, quasi-linear, or HARA), multiple...
Persistent link: https://www.econbiz.de/10012969096
In matching markets, the existence of stable matchings can only be guaranteed under substantive restrictions on preferences. We investigate how these results change in large markets, which we model with a continuum of agents of each type, following the work of Aumann (1964) on general...
Persistent link: https://www.econbiz.de/10012909327