Showing 1 - 10 of 23,207
We propose a model consistent with two observations. First, the tax rates adopted by different countries are generally uncorrelated with their growth performance. Second, countries that drastically reduce private incentives to invest, severely hurt their growth performance. In our model, the...
Persistent link: https://www.econbiz.de/10010951328
We explore the business cycle implications of expectation shocks and of two well-known psychological biases, optimism and overconfidence. The expectations of optimistic agents are biased toward good outcomes, while overconfident agents overestimate the precision of the signals that they receive....
Persistent link: https://www.econbiz.de/10005089165
Aggregate and sectoral comovement are central features of business cycle data. Therefore, the ability to generate comovement is a natural litmus test for macroeconomic models. But it is a test that most existing models fail. In this paper we propose a unified model that generates both aggregate...
Persistent link: https://www.econbiz.de/10005049967
We assess the importance of nominal rigidities using a new weekly scanner data set. We find that nominal rigidities are important but do not take the form of sticky prices. Instead, they take the form of inertia in reference prices and costs, defined as the most common prices and costs within a...
Persistent link: https://www.econbiz.de/10005027104
Recent empirical work suggests that small price changes are relatively common. This evidence has been used to criticize classic menu-cost models. In this paper, we use scanner data from a national supermarket chain and micro data from the Consumer Price Index to reassess the importance of small...
Persistent link: https://www.econbiz.de/10011188533
Persistent link: https://www.econbiz.de/10003756964
Persistent link: https://www.econbiz.de/10003756966
Persistent link: https://www.econbiz.de/10003756969
Persistent link: https://www.econbiz.de/10003668465
"We assess the importance of nominal rigidities using a new weekly scanner data set from a major U.S. retailer, that contains information on prices, quantities, and costs for over 1,000 stores. We find that nominal rigidities are important but do not take the form of sticky prices. Instead,...
Persistent link: https://www.econbiz.de/10003676296