Narrow search
Showing 1 - 10 of 10,608
Cover Image
Initial Expectations in New Keynesian Models with Learning
Murray, James - 2008
learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is … estimated under rational expectations and under learning with three different frameworks for how expectations are set at the … post-war United States. The results indicate statistical evidence for adaptive learning, however the rational expectations …
Persistent link: https://www.econbiz.de/10014217375
Cover Image
Monetary policy with judgment
Gelain, Paolo; Manganelli, Simone - 2020
Two approaches are considered to incorporate judgment in DSGE models. First, Bayesian estimation indirectly imposes judgment via priors on model parameters, which are then mapped into a judgmental interest rate decision. Standard priors are shown to be associated with highly unrealistic...
Persistent link: https://www.econbiz.de/10012216402
Cover Image
The discretization filter : a simple way to estimate nonlinear state space models
Farmer, Leland E. - In: Quantitative economics : QE ; journal of the … 12 (2021) 1, pp. 41-76
Existing methods for estimating nonlinear dynamic models are either highly computationally costly or rely on local approximations which often fail adequately to capture the nonlinear features of interest. I develop a new method, the discretization filter, for approximating the likelihood of...
Persistent link: https://www.econbiz.de/10012432773
Cover Image
Envy, guilt, and the Phillips curve
Ahrens, Steffen; Snower, Dennis J. - 2012
We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their...
Persistent link: https://www.econbiz.de/10009530187
Cover Image
Envy, guilt, and the Phillips curve
Ahrens, Steffen; Snower, Dennis J. - 2012
We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their...
Persistent link: https://www.econbiz.de/10009424702
Cover Image
Envy, guilt, and the Phillips curve
Ahrens, Steffen; Snower, Dennis J. - 2012
We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their...
Persistent link: https://www.econbiz.de/10009425488
Cover Image
Inequality aversion and the long-run effectiveness of monetary policy : bilateral versus group comparison
Ahrens, Steffen - 2012
In this paper we incorporate the two most prominent approaches of inequality aversion, i.e. Fehr and Schmidt (1999) and Bolton and Ockenfels (2000) into an otherwise standard New Keynesian macro model and compare them with respect to their influence on the long-run effectiveness of monetary...
Persistent link: https://www.econbiz.de/10009671657
Cover Image
Real wage rigidities and the cost of disinflations : a comment on Blanchard and Galí
Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007
This paper analyzes the cost of disinflation under real wage rigidities in a micro-founded New Keynesian model. Unlike Blanchard and Galí (2007) who carried out a similar analysis in a linearized framework, we take non-linearities into account. We show that the results change dramatically, both...
Persistent link: https://www.econbiz.de/10003747761
Cover Image
Wage setting in times of high and low inflation
Gödl, Maximilian; Gödl-Hanisch, Isabel - 2024
The recent surge in inflation led many unions and firms to alter their bargaining and wage-setting policies. Using novel German firm-level survey data, we document the extent of state dependence in wage setting across firms and workers during periods of high and low inflation. We find state...
Persistent link: https://www.econbiz.de/10015057673
Cover Image
Real wage rigidities and the cost of disinflations
Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007
This paper analyzes the cost of disinflations under real wage rigidities in a micro-founded New Keynesian model. The consensus is that real wage rigidities can be a useful mechanism to induce the inflation persistence that is absent in the standard Calvo model. Real wage rigidities thus generate...
Persistent link: https://www.econbiz.de/10003561618